On July 1, 2021, the Superintendence of Private Insurance (SUSEP) placed Public Notice No. 25/2021 for public consultation, modifying the draft of the Circular on Livestock Insurance, Animal Insurance, Rural Pledge Insurance, Asset and Agricultural Products Insurance, which aims to review and consolidate norms related to the Rural Group insurance line. The draft repeals SUSEP Circular Nos. 261/2004, 305/2005, 308/2005 and 571/2018.
The Draft Circular establishes the following main changes:
- Extinction of the standardized rural pledge insurance plan, making the insurance operation more flexible and stimulating product development;
- Possibility that insurers, in contracts signed under the Rural Insurance Premium Subsidy Program (PSP), fulfill the obligation of the agency responsible for managing the country’s Agricultural Policy, if applicable, on the matter of correction of maximum deadlines for the communication of the claims, as an exception to the prohibition contained in Circular SUSEP 621/21 that prohibits the correction of this type of term in the contractual conditions; and
- Considering the occasional changes to these insurance lines, provided that the currently defined products are adequate, it will not be necessary to make these practical adaptations. If not in compliance, the insurance plans must be adapted within 180 days of the Draft’s entry into force.
The full Draft Circular can be accessed at this link. Interested parties can send comments or suggestions on the text through an electronic message addressed to email@example.com, until July 16, 2021, using the specific standardized form available at this link.
Demarest’s Insurance and Reinsurance team will monitor the development of this public consultation up to the publication of the final version and remains at your disposal to provide any clarifications on the matter.