SUSEP launches third edition of Regulatory Sandbox with focus on sustainability and technological innovation

The Superintendence of Private Insurance (SUSEP) has launched the third edition of the Regulatory Sandbox, a program aimed at selecting innovative projects to foster competition within the insurance market.

A noteworthy development in this edition is the prioritization of projects deemed:

• “sustainable” – which, as defined by the notice, must align with SUSEP’s regulations and the Ecological Transformation Plan, providing climatic, environmental, or social benefits; or
• “technological” – defined by the notices as those that foster the development of innovative technologies in products, services, or processes, resulting in significant quality improvements.

SUSEP will prioritize the evaluation of innovative projects qualified as “sustainable” or “technological” and applicants are responsible for designating their projects as one or the other. If SUSEP determines that a project does not meet these qualifications, it will be disqualified, and can only be submitted again six months after the date of disqualification.

Projects qualified as “sustainable” must comply with SUSEP and Brazilian National Private Insurance Council (CNSP) regulations on the matter and with the Federal Government’s Ecological Transformation Plan. They must be capable of generating climatic, physical, transitional, environmental, or social benefits for policyholders, beneficiaries, or civil society.

Projects qualified as “technological” must promote the development of innovative technology, either through the introduction of innovative technologies or the enhancement of existing technologies in products, services, business models, or processes. They must add new functionalities or features, resulting in improvements and significant quality gains.

The Regulatory Sandbox, in accordance with CNSP Resolution No. 381/2020, offers an experimental environment where selected companies can develop their projects under special conditions and with fewer regulatory requirements. In this third edition, there will be no limit on the number of approved projects, a significant change from the previous edition, which had a limit of ten slots.

The new notice outlines the eligibility criteria, application procedures, and selection processes for potential participants.

Eligibility requirements

To participate in the Regulatory Sandbox, applicants must:

• Present a product or service that qualifies as an innovative project;
• Use remote means in operations related to their insurance plans, as per specific regulations;
• Demonstrate how the technology employed in the product or service is innovative;
• Ensure that the product or service is at a development stage compatible with the expectation of temporary authorization;
• Submit a business plan with mandatory elements, including risk analysis and mitigation plan.

Application procedures

Applicants must submit all required documents through the Electronic Information System (SEI) within the stipulated deadlines. The business plan must include a detailed organizational structure, market analysis, financial projections, and sustainability policy.

Selection process

SUSEP will review the submitted documents and verify compliance with the eligibility criteria. Non-compliance or failure to provide additional requested documents may result in the rejection of the application. Participants from previous selection calls may reapply if they rectify previous discrepancies and follow current procedures.

Authorization granting

Selected projects will receive temporary authorization, and the registration of insurance plans will be conducted via SUSEP’s Product Registration System (REP), in accordance with SUSEP Circular No. 657 of 2022.

The notice will remain open for an indefinite period, and SUSEP may modify or terminate the program at any time with prior notice. Insurance companies that participated in previous notices may also request the sale of products or adjustment to the new limits.

With this new notice, SUSEP has demonstrated its commitment to innovation and sustainable development within the insurance market, offering a conducive environment for creating solutions that meet contemporary consumer needs and foster social well-being.

Interested parties can access the notice through the website.

Demarest’s Insurance, Reinsurance, Private Pension, and Supplementary Health team at Demarest will monitor the developments of the notice and is available to provide any further clarifications that may be necessary.