SUSEP opens Public Consultation to consolidate rules regarding insurance brokerage and enable self-regulating entities to certify brokers

On December 09, 2022, the Superintendence of Private Insurance (“SUSEP”) opened Notice No. 22/2022 for public consultation, which introduces a draft resolution of the Brazilian National Private Insurance Council (“CNSP”), in order to consolidate rules currently provided for in separate regulations, which involve:

• registration and supervision of insurance brokers, capitalization and open supplementary private pension;
• certification of brokers by self-regulating entities of the brokerage market; and
• regulation of educational institutions authorized to carry out courses and tests for certification of insurance brokers.

In addition, the draft aims to update and align the new provisions with the current legislation in force.

A highlight of the proposal is the simplification of the certification process for brokers – which, from the rule’s entry into force, will allow self-regulating entities of the brokerage market to carry out such certifications. Such measure involves the regulation of provisions provided for in article 36 of Law No. 14,430/2022, which, in addition to creating Insurance-Linked Securities, promoted self-regulating entities to the role of qualifying and overseeing insurance brokers. 

Previously characterized as entities aimed at improving and monitoring the conduct of brokers (provided that they are associates), self-regulating entities will be able to certify brokers in parallel to SUSEP (art. 5 of the draft). As a result, the competence of such entities becomes more comprehensive in regard to registering and monitoring insurance brokers (article 35 of the draft).

As such, SUSEP seeks to streamline the process of certifying brokers, in line with international standards and practices established by the International Association of Insurance Supervisors (IAIS) and the Organization for Economic Cooperation and Development (OECD).

In addition, the draft introduces the following changes:

• Repeal of provisions from CNSP Resolution No. 233/2011, in order to update authorization procedures in accordance with changes introduced by Law No. 14,430/2022.
• Repeal of provisions from Resolution 249/2012, in order to simplify procedures to license educational institutions that carry out certification courses and tests for qualification of insurance brokers.
• Introduction of specific certifications for brokers to work in a particular branch or insurance line as a specialist broker (art. 4).
• Inclusion of a specific provision regarding broker commissions in cases involving the out-of-court settlements of insurers (sole paragraph of article 23).
• Provisions regarding the categorization of acts that depend on prior approval, ratification and communication to SUSEP, in regard to the self-regulating entity, thus simplifying the breakdown of information to be submitted for supervision (Chapter IV).
• In regard to educational institutions, the draft removes from the new regulatory framework the list of subjects that applicants must pursue in order to earn a broker certification. As such, establishing these subjects becomes SUSEP’s responsibility (art. 72).
• Regarding the final provisions, we highlight the deadline 180 days for self-regulating entities and related parties to adjust to the new rules (article 76).
• Repeal of the following rules:

I – CNSP Resolution No. 175/2007;

II- CNSP Resolution No. 233/2011;

III- CNSP Resolution No. 244/2011;

IV- CNSP Resolution No. 249/2012;

V – CNSP Resolution No. 251/2012;

VI- CNSP Resolution No. 252/2012;

VII- CNSP Resolution No. 258/2012;

VIII- CNSP Resolution No. 278/2013;

IX- CNSP Resolution No. 295/2013;

X – CNSP Resolution No. 303/2013;

XI- CNSP Resolution No. 307/2014;

XII- CNSP Resolution No. 310/2014;

XIII- CNSP Resolution No. 318/2014;

XIV- CNSP Resolution No. 334/2015.

Interested parties can submit contributions regarding the draft via email to copep.rj@susep.gov.br by December 24, 2022, using the specific standardized framework available on the SUSEP website.

The full draft can be read here.

Demarest’s Insurance, Reinsurance, Health and Private Pension team will monitor the development of this public consultation and is available to provide further clarifications that may be necessary.