The morning’s discussions revolved around the tremendous growth opportunities in the Brazilian insurance and reinsurance market for companies that properly plan their entry strategy in coordination with knowledgeable legal and industry advisors. Speakers noted the size of the Brazilian economy, low insurance penetration and the existing concentration of insurance premium in personal lines as evidence of the great potential for growth in Brazil for direct commercial insurance and reinsurance.
On a cautionary note, Murilo Chaim, Director of the Superintendency of Private Insurance, noted the central role that compliance with regulatory requirements in registration and operation play in avoiding delays in obtaining authorization to operate and avoiding regulatory penalties for failure to comply with operational controls. In particular, Mr. Murilo stressed the importance of the preferential offer rule, the occasional reinsurer cession cap and the overall foreign reinsurer cession cap as three of the most significant regulations concerning participation of foreign reinsurers in the Brazilian market.
This afternoon’s program includes “Ensuring Competitiveness and Meeting Market Requirements when Negotiating with Brazilian Carriers”, “Selecting the Right Classification for the Long-Term Success of Your Reinsurance Operations” and “Developing a Corporate Strategy for Operating as a Local or Admitted Reinsurer.”. Tomorrow’s program includes “Tailoring Your Reinsurance Agreements and Claims Practices to the Brazilian Landscape”, “Resolving Disputes: Arbitration and Use of Brazilian Courts” and “Acquisition, Training and Retention of Qualified Personnel.”
We will continue to provide coverage at InsureReinsure.com.
If you would like to learn more about the Brazilian or other Latin American (re)insurance markets and/or regulatory environments, please click on the “Contact the Editor” button for follow-up by an EAPD attorney.
