In the wake of SUSEP’s recent relaxation of the cession limit to occasional foreign reinsurers in the areas of surety and petroleum (see here), at least one local commentator is reportedly calling for further relaxation in other lines. In particular, Brazilian attorney Fabio Torres reportedly stated that the limited number of authorized local and admitted reinsurers in other lines, including aviation, mandate raising cession limits more broadly for occasional foreign reinsurers.
Foreign reinsurers also continue to struggle with indefinite tax regulations, with local lawyers providing conflicting advice on appropriate payment of taxes on reinsurance premiums under municipal and federal Brazilian law. For example, in a recent article on valoronline.com.br, reporter Laura Ignacio noted conflicting commentary of two local lawyers regarding the proper payment of municipal and federal taxes for reinsurance premiums to be transferred outside the country. Further guidance from the Brazilian tax and insurance authorities may come soon.
If you would be interested in learning more about the Brazilian or other Latin American (re)insurance markets and/or regulatory environments, please click the “Email the Editor” button and provide your contact information for follow-up by an EAPD attorney.