Brazil: Financial Sector Assessment Program-Technical Note on Insurance Sector Regulation and Supervision

November 30, 2018

Preview Citation

Format: Chicago

Brazil: Financial Sector Assessment Program-Technical Note on Insurance Sector Regulation and Supervision, (USA: International Monetary Fund, 2018) accessed December 22, 2024

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.

Subject: Banking, Financial institutions, Financial regulation and supervision, Financial Sector Assessment Program, Financial sector policy and analysis, Insurance, Insurance companies, Market risk, Mutual funds

Keywords: Annuity products, Banking group, Conglomerate group, CR, Financial Sector Assessment Program, Global, Group supervision framework, Insurance, Insurance companies, Insurance product, ISCR, Market risk, Market share, Mutual funds, SUSEP examination, SUSEP staff, SUSEP superintendent

Publication Details

Pages:

45
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/343
Stock No:

1BRAEA2018007
ISBN:

9781484387559
ISSN:

1934-7685

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