BRAZIL Trends and Developments Contributed by: Cassio Gama Amaral, Thomaz Kastrup and Pedro Ricco, Machado Meyer
activities in the (re)insurance market, including under- writing and claims handling. Notwithstanding, SUSEP has already emphasised that in the event of any conflict between existing regulation and the Insurance Act, the provisions of the latter shall prevail. Accordingly, market participants must adhere to the new legal provisions, even while the regulatory framework is under revision. The Insurance Act became effective on 11 December 2025. In anticipation of that deadline, (re)insurance carriers, brokers and other market participants have been trying to assess inconsistencies in their current practices and infrastructure vis-à-vis the incoming new era. Insurance co-operatives and mutual organisations Complementary Law No 213/2025 was approved by the National Congress and executed by the Brazil- ian President on 15 January 2025 (“LC 213”). Among other issues, it establishes a legal framework for insur- ance co-operatives and mutual organisations (the so-called grupo de proteção patrimonial mutualista ) in Brazil, while also strengthening the oversight and enforcement powers of SUSEP. Although LC 213 is already in force, its full implemen- tation depends on regulation to be issued by CNSP and SUSEP, particularly with respect to the organisa- tional aspects of insurance co-operatives and mutual organisations. Once such regulations come into force, a rapid expansion of the insurance market is expected, with new entrants, increased competition and broader access to insurance products for the population. Insurance co-operatives Historically, insurance co-operatives in Brazil were restricted to specific lines of agriculture and health insurance business. LC 213 expands their scope, allowing co-operatives to operate all types of insur- ance products, except those expressly excluded by CNSP regulation (lines of business related to large risks, such as aviation and marine, credit, nuclear risk insurance, etc). Insurance co-operatives are mutual-type organisa- tions, meaning that they are non-profit organisations
subject to corporate governance, which applies to all members. According to LC 213, these entities must: • request prior approval from SUSEP to operate; and • comply with CNSP and SUSEP regulations on licensing, corporate governance and solvency aspects, among others. In line with the Brazilian general law on co-operatives, LC 213 establishes three types of insurance co-oper- atives. A c ooperativa singular can only operate insur- ance for its respective members (exceptions may be defined by CNSP). Such entity can transfer risk via reinsurance. Cooperativas centrais are organised by one or more cooperativas singulare s, while confederações de cooperativas are organised by one or more coopera - tivas centrais . These entities can: • provide complementary services to their members (but not brokerage); and • underwrite risks in co-insurance with their mem- bers. SUSEP has recently opened a public consultation on the CNSP draft regulation governing insurance c-operatives. The proposed regulation is expected to be enacted in the forthcoming months. Mutual organisations LC 213 formally recognises mutual organisations, which had been operating in the market without a spe- cific regulatory framework in recent years. The goal is clear: to establish a transparent, orderly and account- able framework that integrates these risk-sharing schemes into the National Private Insurance System, fostering competition and bringing these stakeholders within SUSEP’s oversight. Mutual organisations are structured schemes where participants join forces to protect their assets against predefined risks. These organisations are based on the principle of mutuality: members share both risks and costs, creating a network of solidarity and secu- rity among them. The mutual organisation involves three main agents.
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