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  • 7 February 2023

CNSP Resolution No. 451/2022 – assignment operations, acceptance of reinsurance, retrocession, coinsurance and operations in foreign currency and insurance contracts abroad

The National Council of Private Insurance (CNSP) published Resolution No. 451/2022, of December 19, 2022 (Resolution), on assignment operations, acceptance of reinsurance, retrocession and its intermediation, coinsurance and the transactions in foreign currency and insurance contracts abroad.

The consolidation of the regulations took place after analyzing the suggestions and comments submitted through Public Consultation No. 09/2022.

The main changes included (i) definitions (ii) contracts and the reinsurance contracting process (iii) risk transfer with reinsurers not authorized to operate in the country (iv) risk acceptance in retrocession (v) operations of reinsurance brokers (vi) operations carried out in foreign currency and the contracting of insurance abroad.


  • Automatic contract: a reinsurance operation whereby the assignment of a portfolio of previously defined risks is agreed with the reinsurer and involves policies or benefit plans subscribed within a predetermined period.
  • Reinsurance contract: a document that agrees on a risk transfer operation from a cedant (contracting insurance company) to a reinsurer.
  • Local reinsurer: a reinsurer headquartered in Brazil, authorized to carry out reinsurance and retrocession operations, pursuant to the legislation in force.
  • Leading insurer: is responsible for managing the coinsurance operation with the insured.

Conditions for Contracting Reinsurance:

Reinsurance and Retrocession operations, insurance companies and local reinsurers must develop and implement a risk transfer policy. Paragraph 3 of Art. 6 allows local reinsurers to assign, in retrocession, more than 70% (seventy) of the premiums related to the risks they have subscribed to groups of branches i.e., financial, rural and nuclear risks.

Regarding reinsurance contracts:

  • In the event of insolvency or decree of liquidation or bankruptcy of the assignor, the direct payment to the insured/participant/beneficiary/assisted, of the portion of indemnity or benefit related to the reinsurance is authorized provided that it has not been made to the insured by the assignor or by the reinsurer to cedant) when there is a contractual clause for direct payment in the automatic reinsurance contract or, regardless of the clause, in the optional contract, reinforcing the precepts of Complementary Law n.º 126/2007.
  • The term for contractual formalization of reinsurance operations will be 180 (one hundred and eighty) days from the beginning of the coverage period.
  • The contractual formalization of the endorsement will follow the same period counted from the date of acceptance of the risk or beginning of the coverage period, whichever occurs later.
  • The manifestation of the reinsurance broker for the acceptance of the terms and conditions of the contract does not replace the express acceptance by the reinsurers.
  • The parties must formulate the clauses and terms of the reinsurance contract prioritizing clarity, objectivity and avoiding wording that generate subjectivity of interpretation.

Regarding Risk Transfers with Reinsurers Not Authorized to Operate in the Country:

  • If fraud is identified in proving insufficient supply of capacity by local and foreign reinsurers (including unequal treatment of reinsurers consulted or possible changes to the contractual terms and conditions offered with the issuance of endorsements that distort the final contractual terms and conditions placement) the reinsurance contract may be disregarded for prudential purposes with the other applicable penalties being applied.

Regarding the Acceptance of Risks in Retrocession:

  • Insurance companies cannot accept more than 2% (two) of insurance premiums issued relating to the risks they have underwritten.

Regarding the Operations of Reinsurance Brokers:

  • The reinsurance or retrocession contracts must be delivered by the reinsurance brokers duly signed to the Brazilian assignors within a maximum period of 5 (five) business days counted from the formalization date.

Regarding operations in foreign currency and contracting insurance abroad:

  • As in the Public Consultation, the new rule maintains that the issuance of the endorsement referring to the insurance contracted abroad will not characterize a new contract i.e., if the original conditions of the policy offered to Brazilian insurance companies and contracted abroad are maintained.

The Resolution entered into force on January 1, 2023 and was published together with SUSEP Circular n.º 683/2022. This topic has already been discussed in a previous newsletter which is available here.

Lefosse’s Insurance, Reinsurance and Private Pension practice will continue to follow the news and changes that impact the sector. For further information on this subject, or others that may be of interest to you, please contact one of our professionals below:

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