1)Private Insurance Superintendence - SUSEP ADMINISTRATIVE RULE No. 7070, OF 3/2/2018

Under SUSEP Administrative Rule no. 7070, of March 2, 2018, published ton March 7, in the Federal Official Journal (DOU), the Private Insurance Superintendence set up a special commission to discuss the current model of Compulsory Insurance against Personal Injury caused by Land Vehicles (DPVAT). SUSEP made such decision after the internal work groups, created in 2015 and 2016, sent it proposals to discuss issues related to the DPVAT.

The special commission will be composed of the Superintendent of SUSEP, and one representative of each of the following entities: the Solvency Board, the Conduct Supervision Board, the Private Insurance Organization System board, the Federal Prosecution Office for SUSEP; the Economic Policy Department (SPE) of the Ministry of Finance; the National Consumer Protection Department (Senacon); the National Confederation of Insurers (CNseg); the National (CNseg); the National Federation of General Insurance (FenSeg); the National Federation of Insurance Brokers (Fenacor); the National Insurance School; the Education and Research Institute; and Seguradora Líder (insurer).

Once the work is completed, a proposal for a new model of DPVAT will be submitted. The first meeting of the Special Commission was held on March 8.

The Commission is already sorting out options for a new model of DPVAT. The first proposal for changes will be sent to the National Council of Private Insurance (CNSP) until April 16.

In addition to the replacement of the DPVAT for a free competition model named Compulsory Insurance against Traffic Accidents (Soat) – provided in the bill introduced by representative Lucas Vergilio (SD political party - Goiás State) –, the commission is evaluating other measures for the product maintenance.

In addition to the Soat, SUSEP is analyzing the return of the former Compulsory Civil Liability Insurance for Land Vehicles (Recovat) and the possibility of the entity itself to determine the administrative and operating expenses in order for the price of the product to be fair.

It is essential that those building the new model take into consideration the specificities of the DPVAT, which covers pecuniary damages and injuries to victims of accidents involving automotive vehicles in the Brazilian territory.

We point out that several private entities and the insurance market are participating in the building of this new model, and this a very positive fact, especially in view that this is a relevant and sensible issue.

The administrative rule may be checked here.

2) National Land Transportation Agency - ANTT ADMINISTRATIVE RULE No. 006, DE 2/28/2018

Establishes an internal administrative procedure for the execution of contractual guarantee in the performance bond modality presented by the permitees of interstate and semi-urban public road transportation of passengers.

3) SUSEP STATEMENT No. 205, OF 3/14/2018

On March 14, SUSEP approved the Internal Regulation of the Direct Prudential Supervision Priority Committee [Comitê de Priorização da Supervisão Prudencial Direta – COPRI], set up by SUSEP Administrative Rule no. 6918, of June 14, 2017.

According to its Internal Regulation, the COPRI is responsible for defining the insurers, capitalization companies, local reinsurers, and open supplementary social security entities, hereinafter named supervised companies, which will be included in the proposal for the prudential inspection plan to be submitted to the Managing Board for approval.

This measure seems to be a positive element to assure the quality of SUSEP's governance.

The statement is available here.

To view the full article click here

To view newsletters, please click here

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.