On March 31, 2021, the Superintendency of Private Insurance (‘SUSEP’) has published CNSP Resolution 407 of March 29, 2021 (‘Resolution No. 407/2021’), which provides for the general principles and characteristics for the drafting and commercialization of damage insurance contracts to cover large risks. The proposal of the new regulation gives continuity to the modernization and restructuring process of the insurance market in Brazil.

The Resolution No. 407/2021 is in line with the regulatory agenda of bureaucracy reduction and protection of free enterprise and the free exercise of economic activity established by Law No. 13,874/2019 (“Economic Freedom Law”).

In this sense, we can mention one of the main changes promoted by this new regulation, which is a larger freedom for stablishing contractual conditions in damage insurance contracts to cover large risks, with a larger negotiating freedom, between insurers and policyholders or their legal representatives.

Finally, it is important to point out that the Resolution No. 407/2021 expressly defined the concept of damage insurance contracts for the coverage of large risks, providing for maximum guaranty limits (“LMG”), minimum value of total assets, minimum value of gross annual turnover, and restricting its scope to the following classes:

• petroleum risks;
• Specified and All Risks (“RNO”);
• global banking risks;
• aviation risks;
• maritime risks;
• nuclear risks; and
• domestic and export credit insurance for corporate insurers.

The Resolution No. 407/2021 became effective on April 1st, 2021.

Our Insurance and Supplementary Health team is at your disposal for further clarifications.

Yours Sincerely,

Insurance and Supplementary Health