CEO of the Office Pellon & Associados, Luís Felipe Pellon, in an interview for the international publication Lawyer Monthly Magazine, addressed the impact of Law 13,874 and additional legislation related to public bidding New Brazilian legislation and what it means for insurance and reinsurance
Since its enactment in 2019, Law 13.874 has had significant consequences for the insurance and reinsurance sectors in Brazil. The CEO of the Pellon & Associados Office, Luís Felipe Pellon, in an interview for the international publication Lawyer Monthly Magazine (July issue), addressed the impact of this law and additional legislation related to public bidding.
After a long debate in Parliament, Law 13,874 was enacted in September 2019, containing a “Declaration of the Rights of Economic Freedom” imposing new rules for the protection of free enterprise and the free exercise of economic activities. “It is important to highlight the recent legislative initiatives underway in Brazil, which are transforming for key sectors of the economy”, says Pellon.
Pursuant to this law, the bases for supervision and marketing of banking and insurance products were reassessed. In the financial area, digital banks and the open banking regime were allowed, as well as new means of remote payment. In the insurance area, the control exercised by the regulatory body, SUSEP, is no longer total and comprehensive and was directed to those who need it most. Now, only individuals and small businesses will be covered by state inspection. Medium and large companies must deal directly with insurers about their insurance coverage needs. In this new context, insurance brokers will play an even more important role.
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