The European risk management association challenged Brazil’s insurance regulations
Ferma appealed to the Brazilian government to repeal reinsurance regulations passed by Brazil’s national board of private insurance (CNSP).
This move is in support of the large number of its members whose companies have invested in Brazil.
The two new resolutions that Ferma takes issue with came into effect on March 31.
One resolution forbids insurers to cede business to intra-group reinsurers and negatively affects foreign insurance companies.
The second regulation mandates placement of 40% of reinsurance business with local reinsurers.
Ferma believes foreign capacity is necessary for large programmes that rely heavily on reinsurance, such as the infrastructure projects for the 2014 World Cup and the 2016 Olympics.
Jorge Luzzi, vice-president of Ferma and director of group risk management for Pirelli, stated: “Some further modifications are under discussion with the Brazilian authorities. We continue to lobby on behalf of Ferma members.”