Susep to review insurance products from unauthorized operators

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Friday, November 10, 2017

Brazilian insurance regulator Susep has created a working group to evaluate impacts and possible penalties regarding the offer of insurance products by unauthorized operators.

The objective is to analyze the activities carried out by associations, entities and cooperatives that offer insurance coverage and products in a unregulated manner, according to Susep.

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The working group will be comprised by representatives of Susep itself, the finance ministry, the national confederation of insurance companies (CNseg), the national insurance federation (FenSeg), the pension industry association (FenaPrevi) and the federation of insurance brokers (Fenacor), among others. The deadline for completing the group's work is 90 days from the date of publication of the regulations.

Susep superintendent Joaquim Mendanha de Ataídes said that the initiative is aimed at looking closely at the marginal market (as the offering of products by unauthorized companies is known) in order to adopt measures to benefit consumers and the authorized insurance sector.

"These companies do not comply with the rules and criteria established by the national council for private insurance (CNSP) and the illegal practice causes damage to the public because there is no legal protection for the consumer," said Ataídes.