On December 29, 2020, the Superintendence of Private Insurance (SUSEP) published Circular No. 620, which intends to simplify certain rules for regulating the standards and criteria for insurance operations that fall within the Property Group.
The Circular, which had been previously submitted for public consultation, revises and consolidates the SUSEP Circulars that provide for insurance plans within the Property Group insurance lines considered massified, such as: (i) comprehensive insurance; (ii) loss of profit insurance; (iii) engineering risks insurance; and (iv) multiple-peril insurance.
It is important to highlight that the extended warranty insurance is explicitly excluded from this list, since it has specific regulation.
In the category of the comprehensive insurance, the Rule divides the group into homeowners (residential), commercial multiple-peril and condominium multiple-peril, the latter previously regulated by CNSP No. 218, of December 6, 2010.
Such Rule also provides for the condominium multiple-peril insurance modalities that will be available to the market (simple basic coverage or broad basic coverage).
Regarding the engineering risks insurance to be offered in the mass market insurance segment, the Rules establishes a minimum list of elements to be provided for under contractual conditions.
Therefore, based on the assumption that there is a perception of an excess of regulation in the insurance industry in Brazil, the Circular reinforces the regulatory simplification agenda.
Demarest’s Insurance and Reinsurance team is available to provide any clarifications on the subject.