Brazil: Market Development and Operating Requirements Update

Following Lloyd’s successful approval as an Admitted Reinsurer, we are currently establishing a representative office in Rio de Janeiro, which is expected to open by the year end.

As Lloyd’s develops its presence in the Brazilian market, considerable time is being devoted to working with SUSEP and other parties to clarify certain issues. Recent and ongoing issues addressed include:

  • The activities (eg marketing/promotion) permitted to be carried out by managing agent liaison offices in Brazil, and their potential tax implications. 
  • General tax implications of Lloyd’s operations in Brazil. 
  • The level of financial reporting required of Lloyd’s by SUSEP. The regulator currently requires syndicate level reporting; negotiations concerning this requirement are currently ongoing with SUSEP and alongside the local reinsurance industry. 
  • Language of contract – requirements for translations and use of local or alternative languages on reinsurance contracts. 
  • IRB grace period (where business placed with the involvement of the IRB does not have to comply with new regulation) extension to 31 December 2008.

 

Given the recent nature of the opening of the Brazilian reinsurance market, many adjustments must be made to the local regulatory regime, and these adjustments inevitably lead to unforeseen issues and questions. Any developments affecting Lloyd’s business in Brazil resulting from local regulatory changes, questions raised or any other discussion are communicated through Crystal on an ongoing basis.

An internal working group has been established and is meeting weekly to ensure co-ordination of the various ongoing work streams. Additionally, a Lloyd’s ‘market’ group has been established to ensure consultation with managing agents with regard to business development and regulatory matters.
Last updated on 17 Dec 2008