Brazil : Financial Sector Assessment Program-Technical Note on Insurance Sector Regulation and Supervision
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Summary:
The insurance sector has significant potential for expansion and to contribute to economic growth as an important part of the financial sector. While the insurance sector has grown at 10 percent annually over the last 5 years, on average, and remains profitable with high solvency ratios, the insurance penetration and density are lower than other emerging markets. Nevertheless, the insurance industry has the potential to reach to much higher levels of insurance penetration. A few large conglomerate groups—composed of banks, insurers and investments funds—dominate the insurance sector. Conglomerate groups account for more than 75 percent of the market share. Reflecting very conservative regulations imposed by the Banco Central do Brasil (BCB) and the Superintendency of Private Insurance (SUSEP), the interlinkages between banks and insurers are limited. Nevertheless, material contagion may occur through a reputational channel, adversely impacting the profitability of the linked business.
Series:
Country Report No. 18/343
Subject:
Financial Sector Assessment Program Insurance regulations Insurance supervision Stress testing
English
Publication Date:
November 30, 2018
ISBN/ISSN:
9781484387559/1934-7685
Stock No:
1BRAEA2018007
Format:
Paper
Pages:
45
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