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Please make sure you view all key information in your search results before accepting a risk in the chosen territory.

Disclaimer: Crystal is provided for information purposes; it does not constitute solicitation of business and is not intended to be a substitute for appropriate professional advice. Information relating to Lloyd’s Brussels Subsidiary may be subject to regulatory approval.

Brazil * Lloyd's
* Please see Authorisation for details of Lloyd's underwriters licensing status
Please see Authorisation for details of Lloyd's Brussels licensing status

Brazil

Authorisation

Lloyd's
Insurance

Lloyd's underwriters are not licensed to write insurance in or from Brazil.

Per Resolution 197/2008, non-admitted placements are only permitted in this territory in the following cases:

  • When the insured is a person resident in Brazil and needs insurance coverage only for the period s/he is temporarily in a foreign country;
  • Insurances that, at the time of the publication of Law 126/2007 and according to the laws in force, were placed with foreign insurers; 
  • * When there is no insurance coverage available in Brazil, provided the insurance operation does not infringe any law; and 
  • * Insurances of hull, machinery and liability in respect of vessels registered with the Brazilian Special Registry (REB), according to paragraph 2, Article 11 of Law 9432/1997.

* Underwriters who wish to accept insurance business of this type need to ensure that the risk was initially presented to and declined by insurance companies licensed to write this type of risk in Brazil. SUSEP established the refusal procedure by the means of Circular 392/2009. Please see 'More detail' below for further information.

Last updated: 13 Aug 2018

Reinsurance

Lloyd’s is registered as an admitted reinsurer in Brazil. This registration enables Lloyd's underwriters to write reinsurance business on a cross-border basis only as per the provisions outlined below:

Lloyd's underwriters can write all classes of reinsurance, except for endowment life insurance and supplementary pension plans.

Brazilian cedents are required to make a “preferential offer” – i.e., a right of first refusal on a minimum of 40% of each reinsurance risk - to local reinsurers prior to placing  the risk with Admitted or Occasional Reinsurers (“Non-Brazilian Reinsurers"). Please see 'More Detail' below for further information.

Please note that reinsurance contracts must be compliant with strict contract formalisation rules. Please refer to the Insurance Documents sections, under Wordings, for full details.

 

Last updated: 13 Aug 2018


Anti-Money Laundering Requirements regarding transactions with Politically Exposed Persons (PEPs)
Last updated: 13 Aug 2018


Definition of risk location

Lloyd's
A risk is Brazilian where the situs of the risk and/or the insured is located in Brazil.

For general guidance on identifying the location of a risk please refer to the risk locator.
Last updated: 13 Aug 2018

Compulsory classes

Lloyd's

 The following classes are compulsory in Brazil:

  • Motor third party injury liability (DPVAT).
  • Third party injury liability for owners of marine hulls of all types (DPEM).
  • Bodily injury to commercial aviation passengers (civil liability).
  • Civil liability for owners of aeroplanes (RETA).
  • Workers' compensation (state scheme).
  • Civil liability for construction contractors in urban zones for damage to people or property.
  • Assets granted as guarantee for loans or credit facilities of public financial institutions.
  • Surety for performance of obligations of contractors and real estate developers.
  • Guarantee for payment by borrowers in construction projects.
  • Property damage to divided buildings (condominiums) in accordance with Law No 4.591/64.
  • Insurance against fire and transportation of goods owned by corporate entities located in Brazil or transported therein.
  • Third party liability for damage to cargo transported by land or sea, in accordance with Law No 8.374/91.
  • Export credit insurance financed by government institutions, when deemed appropriate by the CNSP, in accordance with Decree Law No 826/69.
  • Third party liability for distributors of petroleum products.
  • Personal accident insurance for professional sporting organisations.
  • PI for insurance and reinsurance brokers.
  • Force majeure or fortuity for property of juridical persons whilst it is being transported within Brazil.
  • Crop insurance for recipients of government farming funds.
  • Travel insurance for Brazilian visitors to Schengen states.
  • Green Card motor insurance for vehicles travelling to other MERCOSUR countries.
Last updated: 13 Aug 2018

Class specific regulations

Lloyd's
Minimum insurance retentions by local cedants 
Last updated: 21 Aug 2018


Brazil

Summary of taxes applicable to insurance

Lloyd's
  • Remittance tax - 2% Lloyd's underwriters are not responsible for administering remittance tax.  Remittance tax is a charge on and is settled by the ceding company.  However in accordance with market practice the cost may be passed on to underwriters reinsuring business from Brazil.
  • IOF (Tax on financial transactions - 0.38%) - This tax is applicable on foreign currency exchange transactions and is payable by the contracting party of the foreign currency exchange transaction, which can be either the ceding insurer or the reinsurance broker. Unless it is agreed otherwise by the parties, this 0,38% IOF tax should not be charged to reinsurers, who are not the contracting party of the foreign currency exchange transaction. For examples of when the IOF tax may be applicable, please refine your search to include the sub-category: "Financial Considerations - Exchange Controls". 
Last updated: 03 Jun 2015

Brazil

Reinsurance

Lloyd's
Rate of tax is 2% - Note: This tax is due only on reinsurance premiums paid to non-resident reinsurers but it is the liability of the cedant.

Last updated: 03 Sep 2008

Method of calculation & administration

Lloyd's
Remittance tax is a charge on the ceding insurer.  Lloyd's underwriters are not responsible for administering the tax however in accordance with market practice the cost may be allowed to cedants by underwriters.

Method of calculation

Rate of tax X premium

How tax should be shown on the slip

Should not be shown in the tax sections of the MRC but may be shown as a deduction under 'Other information'

Method of payment for Lloyd's business

Not applicable as Lloyd's underwriters are not responsible for administering the tax.

Last updated: 03 Sep 2008

Brazil

Exchange controls

Lloyd's
Tax on financial transactions (O Imposto sobre Operações de Crédito, Câmbio e Seguros) (IOF)
Last updated: 14 Oct 2016


Lloyd's operating charges

Lloyd's
This information is secured Secure item
Last updated: 14 Oct 2016

Brazil

Coverholder business

Lloyd's

Coverholders are not recognised under Brazilian regulations.  Therefore, Lloyd’s may not grant binding authority to intermediaries operating in Brazil.

It is permitted for Lloyd's approved coverholders, which are located outside of Brazil, to place reinsurance business from Brazil directly with Lloyd's underwriters without the involvement of Lloyd's brokers.

Please see Lloyd's authorisation for details of the importance of identifying Politically Exposed Persons (PEPs) prior to establishing a business relationship with a Brazilian cedant.

Last updated: 13 Aug 2018

Intermediary regulation

Lloyd's

According to Brazilian regulations, reinsurance business may be placed either:

Directly with a ceding company (i.e. with no involvement of reinsurance broker(s)); 

that is, a Brazilian ceding company may place reinsurance directly with Lloyd’s managing agents’ service companies or with Lloyd’s approved coverholders acting on behalf of Lloyd’s syndicates.

or through a locally registered reinsurance broker* licensed by the regulator 

that is, if business is placed with Lloyd's underwriters via brokers approved by Lloyd's, both a Brazilian registered reinsurance broker* and a Lloyd's approved broker need to be involved in the reinsurance placements.

Therefore, the business chain can be as follows: 

1. Directly with a ceding company, through Lloyd’s managing agents’ service companies or through Lloyd’s approved coverholders acting on behalf of Lloyd’s syndicates.
 
 i. (Retro)ceding company
 ii. Lloyd’s managing agents’ service companies or Lloyd’s approved coverholders acting on behalf of Lloyd’s syndicates
 iii. Lloyd's syndicates

2. Through a locally registered reinsurance broker* licensed by the regulator (NOT through a Lloyd’s approved broker).

 i. (Retro)ceding company
 ii. Registered local broker* (please see important note below)
 iii. Lloyd’s managing agents’ service companies or Lloyd’s approved coverholders acting on behalf of Lloyd’s syndicates
 iv. Lloyd's syndicates
 
3. Through a locally registered reinsurance broker* licensed by the regulator (through a Lloyd’s approved broker).

 i. (Retro)ceding company
 ii. Registered local broker* (please see important note below)
 iii. Lloyd’s approved broker
 iv. Lloyd's syndicates 

*Involvement of non-registered Brazilian reinsurance brokers in reinsurance business transactions could result in penalties or other consequences imposed by the regulator. Managing agents should ensure that only authorised reinsurance brokers are involved in any reinsurance transaction.

Last updated: 13 Aug 2018

Brazil

Insurance documents

Lloyd's

Contract certainty applies to general insurance contracts either entered into by a UK regulated insurer (such as Lloyd’s underwriters) or arranged through a UK regulated broker (such as Lloyd’s brokers based in the UK).

Lloyd's has developed Quality Assurance (QA) checks to help the market comply with this requirement.

Further information on contract certainty can be found on the Market Reform website.

Last updated: 13 Aug 2018


Wordings
Last updated: 13 Aug 2018


List of locally licensed insurers and reinsurers
Last updated: 13 Aug 2018


Binding authorities

Lloyd's
This information is secured Secure item
Last updated: 13 Aug 2018

Politically Exposed Person (PEP) review
Last updated: 13 Aug 2018


Language of contract

Lloyd's

Reinsurance contracts may be issued in Portuguese, English or in another foreign language. 
 
Where a contract is issued in a language other than Portuguese, the foreign language will prevail if so agreed by the contracting parties (cedant / retrocedant and reinsurer / retrocessionaire).  It is strongly recommended that the contract documentation clearly states the language agreed between the contracting parties.  Equally, if a translation is provided, it should be stated in the contract.

If SUSEP, the Brazilian insurance regulator, requests to see a contract as a part of supervision of local companies, or if a dispute goes to court in Brazil, the contract in question must be ''Consularised” [1], and translated into Portuguese by a certified public translator [2].
We understand that responsibility for providing translated documentation lies with ceding companies.

Translation

Managing agents may wish to use the following service providers for the translation and notarisation of documents. However, managing agents are free to use other service providers of their choice and the contacts below are provided for information only:

2tr Solucoes Globais Ltda (Translators)
R. Voluntarios da Patria, 45/401
Rio de Janeiro – RJ
CEP 22270-000 – Brazil
Telephone: +55 21 2266 6449
Facsimile: +55 21 2286 1694
Email: info@2tr.com.br
www.2tr.com.br

Saville & Co (Notary)
One Carey Lane
London EC2V 8AE
United Kingdom
Telephone: +44 (0) 20 7920 0000
Facsimile: +44 (0) 20 7920 0088
Email: mail@savillenotaries.com
www.savillenotaries.com

The Brazilian Consulate General is the only body in London which can provide the necessary consularisation services:

Brazilian Consulate General
3 Vere Street
London, W1G 0DH
United Kingdom
Telephone: +44 (0) 20 7659 1550
Facsimile: +44 (0)20 7659 1554
E-mail: info@consbraslondres.com

www.consbraslondres.com



[1] Consularised = legalised (i.e. authorised by the Brazilian Consulate, which usually requires prior notarisation of the document).

[2] According to legislative requirements followed by the Brazilian Consulate General in London, translations must be carried out by a certified public translator in Brazil (i.e. translations carried out in the UK or other countries are likely to be rejected by the Consulate).

Last updated: 13 Aug 2018

Several liability

Lloyd's
This information is secured Secure item
Last updated: 16 Dec 2011

Choice of law

Lloyd's
As per Article 38 of CNSP Resolution 168/2007, reinsurance contracts shall include a clause stipulating that any disputes arising in relation thereto shall be subject to the laws and jurisdiction of Brazil, with the exception of when an arbitration clause has been agreed under the reinsurance contract, which shall conform with the prevailing legislation.
Last updated: 13 Aug 2018

Jurisdiction

Lloyd's
As per Article 38 of CNSP Resolution 168/2007, reinsurance contracts shall include a clause stipulating that any disputes arising in relation thereto shall be subject to the laws and jurisdiction of Brazil, with the exception of when an arbitration clause has been agreed under the reinsurance contract, which shall conform with the prevailing legislation.
Last updated: 13 Aug 2018

Service of suit

Lloyd's

The inclusion of a service of suit clause is not mandatory.

However, where a service of suit or similar clause is referenced in the contract, the nominee should also be stated. Lloyd’s underwriters are free to choose a nominee for service of suit. It is also permissible to appoint the Lloyd’s General Representative.

Last updated: 13 Aug 2018

Brazil

Processing premiums

Lloyd's
This information is secured Secure item
Last updated: 20 Nov 2015

Regulatory reporting

Lloyd's
This information is secured Secure item
Last updated: 20 Nov 2015

Foreign insurance legislation (FIL) codes

Lloyd's
Please refer to Xchanging for current list of FIL codes.
Last updated: 14 Oct 2016

Claims

Lloyd's
This information is secured Secure item
Last updated: 09 Dec 2013

Brazil

Insurance law and regulation

Lloyd's

Market bulletins

Lloyd's

Global contracts

Lloyd's

A Global Contract is a multi-jurisdictional policy. A multi-jurisdictional policy must account for local fiscal and regulatory obligations on the insured and the insurer, including licensing and operating restrictions.

Last updated: 15 Dec 2011


Market intelligence

Lloyd's

Lloyd’s Market Intelligence provides analysis of the world’s insurance industry from a geographic perspective to help Lloyd’s managing agents, brokers and coverholders grow their business internationally. The Lloyd’s Market Intelligence reporting suite is comprised of the following products:
 
Compare countries – Structured database allowing comparison of economic, insurance market and Lloyd’s business statistics for over 200 territories.
 
Country profiles – Individual factsheets for Lloyd’s key territories covering +50 territories
 
Country roundups – Summaries of recent industry news and events, available for selected territories
 
Market presentations – Reports containing local insights from Lloyd’s Country Managers on key trends, main opportunities and challenges for Lloyd’s in their markets covering +30 territories
 
Class review – In-depth reports providing benchmarking insights in key territories, broken down by class of business, covering +35 territories
 
To access statistics and analysis available for this or other territories, please visit the Market Intelligence website. Please note that the above products are password-protected, please email the Market Intelligence team at WMID@lloyds.com to obtain your relevant password.

Last updated: 13 Aug 2018

Brazil

Representative(s)

Lloyd's

Marco Antonio de Simas Castro
General Representative & Managing Director
Lloyd's Escritório de Representação no Brasil Ltda.
Avenida Almirante Barroso, nº 52 sala 2401 - Centro - Rio de Janeiro
CEP 20031-918/RJ
Brazil

Phone: +55 (21) 3266-1900
E-mail: marco.castro@lloyds.com

Last updated: 13 Aug 2018

Lloyd's agent

Lloyd's
Click here for the Lloyd's Agent
Last updated: 13 Aug 2018