In Brazil the Lloyd’s market is licensed as an 'Admitted' Reinsurer. This means that all business is written in London on a cross-border basis. Lloyd's underwriters can write all classes of reinsurance in Brazil, except for endowment life insurance and supplementary pension plans.
Lloyd's underwriters do not generally deal directly with policyholders. Instead, business is accepted by Lloyd's underwriters through the following entities:
Lloyd's brokers - insurance business is generally brought to Lloyd's by Lloyd's brokers who are insurance broking firms accredited by Lloyd's to broke insurance business at Lloyd's. Local Brazilian brokers can place Brazilian reinsurance business via an accredited Lloyd’s Broker or directly to the Lloyd’s Managing Agent via a “coverholder” or “service company”.
Coverholders or Service Company - Lloyd's underwriters may delegate their authority to enter into contracts of (re)insurance to a 'coverholders' or “service company”. In such circumstances the general principle is that the coverholder acts as agent of the Lloyd's underwriters (rather than as agent of the policyholder).
Coverholders are not recognised under Brazilian regulations. Therefore, Lloyd’s may not grant binding authority to intermediaries operating in Brazil, however it is permitted for Lloyd's approved coverholders, which are located outside of Brazil, to accept reinsurance business from Brazil (from Brazilian insurance companies or local brokers) on behalf of Lloyd’s syndicates.
According to Brazilian regulation, a Brazilian insurance or reinsurance cedant, can place risks directly with Admitted Reinsurers (Lloyd’s) or through a registered broker. In this case the register broker must be a Brazilian reinsurance broker registered by SUSEP. A list of licensed brokers are available at SUSEP web page www.susep.gov.br.
If you require more information about how to place Brazilian reinsurance risks at Lloyd’s please refer to Lloyd’s Brazil at Crystal
Get quick and easy access to regulatory and taxation requirements in Brazil with the Crystal tool. This information is intended for use by Lloyd's market professionals only.