Brazil regulator launches public hearing for open insurance model

Bnamericas Published: Thursday, April 22, 2021
Brazil regulator launches public hearing for open insurance model

Brazilian insurance regulator Susep said it launched a public hearing as part of its plan to implement an open insurance model.

The hearing will be open until May 24 and details of the process can be obtained here.

Aimed at boosting competition, the information-sharing model will make it easier for clients to shop around for the best product offerings as insurers will have access to the same customer data from clients who agree to share their information. 

The country’s central bank has already begun the gradual implementation of an open banking model with the same goal. 

"Open insurance has the potential to improve the way customers, especially individuals and small and medium-sized enterprises, manage their finances, how companies interact with each other and with their customers, in addition to promoting financial inclusion, democratizing access to insurance and pension products and transforming competition in the market," said Susep head Solange Vieira in a press release.

Consumers that previously had little or no access to the insurance and pension markets will be able to obtain insurance coverage and pension products in a low-cost and customized way thanks to the open insurance model, she added.

The first phase of the model’s implementation is set to begin in December this year, with it becoming fully operational at the start of 2023.

"The banking and insurance sectors in Brazil are highly concentrated with few players dominating the market. Measures such as open banking and open insurance are important steps in attracting new players to the market," Diego Perez, head of Brazilian fintech association ABFintech recently told BNamericas.

The banking sector is already seeing the entry of new players as a result of measures related to open banking and this is something that will take place in the insurance sector also, said Perez.

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