BRAZIL Law and Practice Contributed by: Thiago Junqueira and Daniel Barreto Gelbecke, Junqueira & Gelbecke Advogados
by SUSEP, which allows new business models, prod- ucts and technologies to be tested under controlled conditions with temporary regulatory flexibility. Since the most recent SUSEP call, the sandbox has become permanently open, enabling the continuous entry of projects rather than limited application windows. In parallel, the implementation of open insurance rep- resents another major regulatory initiative, fostering data sharing, interoperability and the creation of new digital services, while encouraging innovation and col- laboration between insurtechs and traditional insurers. 11. Emerging Risks and New Products 11.1 Emerging Risks Affecting the Insurance Market In Brazil, emerging risks include cyber-risk and increased automation, climate and catastrophe-relat- ed risks, and longevity risk. Cyber and technology- driven exposures have grown with digitalisation and the use of artificial intelligence, leading the regulator to reinforce governance, risk management and opera- tional resilience requirements for insurers. Climate change has intensified natural catastrophe risks, particularly in rural insurance. In response, CNSP Resolution No 485/2025 sets environmental, social and climate-related guidelines for rural insur- ance, while CNSP Resolution No 473/2024 estab- lishes criteria for classifying insurance and pension products as sustainable. These measures are com- plemented by SUSEP Circular No 666/2022, which integrates sustainability requirements into insurers’ governance and risk frameworks. Longevity risk has also gained relevance, addressed through CNSP Resolution No 484/2025, which regu- lates Universal Life insurance and introduces safe- guards related to long-term risk, transparency and product sustainability. 11.2 New Products or Alternative Solutions In Brazil, insurers are developing new products to address emerging risks through technology, sustaina- bility and innovative structures. Cyber and technology risks have led to the expansion of standalone cyber
and financial lines products, with broader coverage. Climate and catastrophe risks are being addressed through more flexible rural insurance and parametric solutions based on weather indices. Longevity risk has driven the structuring of Universal Life insurance products combining protection and investment fea- tures, although their large-scale commercialisation still depends on complementary SUSEP regulation and clearer tax treatment. 12. Developments in Insurance Law 12.1 Significant Legislative or Regulatory Developments Key additional developments in Brazil include the fol- lowing. • The Insurance Contract Act (Law No 15,040/2024) has been in force since December 2025 and is reshaping disclosure, policy wording and claims- handling standards, with ongoing SUSEP/CNSP rulemaking to align secondary regulation. • Complementary Law No 213/2025 materially reshaped the institutional and regulatory perimeter of the sector by expanding and systematising the legal framework for insurance co-operatives (which already existed in Brazil but operated under a much more limited and fragmented scope), intro- ducing a dedicated statutory regime for mutualistic property protection schemes ( proteção patrimo - nial mutualista ) and their licensed administrators, and strengthening SUSEP’s enforcement toolkit through an updated sanctioning framework, includ- ing terms of commitment and more detailed rules for administrative proceedings and penalties. • Regulatory reform agenda – SUSEP’s 2026 Regu- latory Plan prioritises reforms linked to the new Insurance Contract Act and recent institutional changes in the sector. • Tax reform – premium taxation is transitioning to the IBS/CBS system, with the gradual phase-out of IOF on insurance and reinsurance operations, under a specific regime for financial services. • Alternative risk transfer – the SSPE/LRS framework is operational, enabling insurance-linked securities and reinforcing capital markets-based risk transfer alongside traditional reinsurance.
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