SUSEP approves Regulation Plan for 2024

Plan includes road carriers’ liability insurance, surety bonds, cyber risks and more

On November 28, 2023, the Superintendence of Private Insurance (SUSEP) published Resolution No. 032, of November 22, 2023, which approves the authority’s regulation plan for the second half of 2023 and for 2024.

According to Annex I of the resolution, the priorities of each topic are divided into:

• P1 – topics expected to be in the regulation plan in the second half of 2023;
• P2 – topics expected to be in the regulation plan for the year 2024; and
• P3 – topics that will be addressed according to SUSEP’s availability of time and resources.

Among the topics that will be subject to regulation next year, the following stand out:

• The review and consolidation of the regulatory framework relating to Civil Liability Insurance for cargo carriers, after the enacting of Law no. 14.599/2023, planned for the 1st half of 2024;
• Study on insurance and investments in infrastructure for the designing of new surety bonds and debentures, planned for the 2nd half of 2024;
• Study on the National Reinsurance Policy, aiming to improve tax conditions for local reinsurers, in addition to comparative studies on national retention of reinsurance premiums and the role of reinsurers in long-term investments, as well as on the behavior of reinsurers in the insurance market, with the claims control clause and other insurance market modeling instruments, planned for the 1st half of 2024;
• Study on cyber risk insurance, planned for the 1st half of 2024, and a study aimed at adjusting SUSEP’s and the supervised market’s cybersecurity system to the National Cybersecurity Policy, planned for the 2nd half of 2024.

The plan is divided into 9 general topics, each containing specific topics to be regulated:

1. Working Group “Insurance, New PAC and Neoindustrialization”

Study including conclusions and recommendations pertaining to the working group’s final report, to be completed in the 2nd half of 2023.

2. Ecological Transformation and Supervised Markets

Study including conclusions and recommendations pertaining to the final report of the Insurance and Ecological Transformation Working Group, to be completed in the 1st half of 2024.

3. National Policy for Access to Insurance

Review of regulations on cash value insurance coverage offered in personal insurance plans and open supplementary pension plans; drafting of regulations that provides for criteria on the structuring, sale and operationalization of Universal Life Insurance; and a study with a proposal on the National Policy for Access to Insurance and alternatives to increase the population’s access to insurance and supplementary pension products.

4. National Reinsurance Policy: Development instrument

Conduct a study for the National Reinsurance Policy, as mentioned above.

5. National Cybersecurity Policy and Supervised Markets

Study on specific insurance for cyber risks and compliance with the National Cybersecurity Policy.

6. Authorization

Topics relating to the auditing of SPOCs’ (Customer Order Processing Company) financial, to job positions in statutory bodies, and to portfolio transfer.

7. Prudential Regulation

Topics relating to the Own Risk and Solvency Assessment (ORSA) , the fiduciary agent involved in the issuance of insurance risk letters, remuneration policies, among other topics.

8. Conduct Regulation

Standards that apply to consumers retained by supervised entities, SUSEP Circular No. 657/2022, which provides for product registration, among other topics.

9. Development of Supervision Instruments

Review of the regulations that govern administrative investigations and administrative sanctioning proceedings, among other topics.

Access the full 2023-2024 Regulation Plan.

Demarest’s Insurance, Reinsurance, Private Pensions and Supplementary Health team will continue to monitor regulatory developments and is available to provide legal assistance and any clarifications on the subject.