Brazil’s regulator the Superintendence of Private Insurance (SUSEP) has published a range of proposals designed to bolster the country’s financial and insurance protection against natural catastrophes, with reforms and further developments in insurance-linked securities (ILS) set to be part of the continuing discussions.
Having convened a working group of industry, regulatory bodies and experts to look at how Brazil can enhance its financial protection against natural catastrophe risks, SUSEP has published the outcome of that work, with a document that details numerous proposals and avenues for continued exploration.
Proposals range from natural disaster funds for Brazil, to both local and sovereign level catastrophe risk transfer, alongside parametric insurance, broader use of the Brazilian Letra de Risco de Seguro (Insurance Risk Letters) regulations, which are the country’s own-brand of insurance-linked securities (ILS), as well as the potential for broader use of capital markets backed reinsurance support through catastrophe bonds.
FULL ORIGINAL PUBLICATION HERE