RESOLUTION CNSP 453, OF 19 December 2022
Provides for the issuance of Insurance Risk Notes by means of Special Purpose Insurance Company and makes other provisions.
The SUPERINTENDENCY OF PRIVATE INSURANCE - SUSEP, in the use of the attribution conferred upon it by art. 34, item XI, of Decree 60.459, of 13 March 1967, makes public that the NATIONAL COUNCIL OF PRIVATE INSURANCE - CNSP, in ordinary session held on 16 December, in view of the provisions of Law 14.430, of 3 August 2022, and considering the contents of Susep File 15414.622421/2022-15, resolves:
Art. 1. To provide for the issuance of Insurance Risk Notes (LRS) by means of a Special Purpose Insurance Company (SSPE).
Art. 2. For the purposes of this Resolution, the following should be considered:
I - Special Purpose Insurance Company (SSPE): insurance company whose exclusive purpose is to carry out one or more operations, with assets independence among them, of risk transfer of insurance, complementary pension fund, supplementary health, reinsurance or retrocession of one or more counterparties and its financing through issuance of LRS, a debt instrument linked to insurance and reinsurance risks;
II - Insurance Risk Note (LRS): a registered credit note, transferable and freely negotiable, representing a promise of payment in cash, linked to insurance and reinsurance risks;
III - insurance and reinsurance risks: insurance, complementary pension fund, supplementary health, and reinsurance or retrocession risks;
IV - counterparty: the insurance company, the reinsurer, the complementary pension fund entity, the supplementary health care operator, or the legal entity, public or private, whether headquartered in Brazil or not, that cedes insurance and reinsurance risks to the SSPE;
V - risk transfer contract: an instrument entered into between the SSPE and the counterparty transferring risks from the counterparty to the SSPE;
VI - securitization operation: an operation that transfers insurance and reinsurance risks to the SSPE, which raises the necessary resources as guarantee, by means of the issuance of LRS, with assets independence in relation to the other operations and to the SSPE itself and its own registration with the National Register of Legal Entities (CNPJ);
VII - LRS premium: the amount paid by the counterparty to SSPE as a result of the risk transfer contract;
VIII - securitization guarantee: funds raised by SSPE, with specified investors for each insurance and reinsurance risk securitization operation, by means of issuing LRS, necessary to guarantee the insurance and reinsurance risks;
IX - independent assets of the operation: independent assets constituted for each operation of securitization of insurance and reinsurance risks, affected and linked to the LRS, corresponding to the total value of the assets of each securitization operation; and
X - Maximum Exposure to Risk (EMR): total nominal value of the maximum possible loss arising from the risk transfer contract, that should be increased by any expenses that the SSPE may incur as a result of claims.
Art. 3. The SSPE should appoint:
I - a technical actuary: individual or legal entity responsible for the calculation of technical provisions, for the actuarial technical notes prepared, if necessary, and for the actuarial information submitted by the supervised entity to Susep, besides other duties set forth in specific rules;
II - a technical director: an individual responsible before Susep for following up, supervising and complying with the actuarial procedures set forth in the rules in force, in addition to other duties established in specific rules; and
III - an accounting director: individual responsible for accounting to be accountable to Susep for the follow-up, supervision and fulfilment of the accounting rules and procedures set forth in the specific rules in force, in addition to other duties established in specific rules.
Sole paragraph. The technical director and the accounting director should be held accountable for the information provided and for the occurrence of situations, which indicate fraud, negligence, recklessness, or lack of skill in the exercise of their functions, without prejudice to the application of the penalties set forth in the legislation in force.
CHAPTER I
THE AUTHORISATION OF THE SSPE
Art. 4. The provisions that deal with authorisation for operation, commencement of operations, exercise of positions in statutory bodies, payment of capital, transfer of portfolio and conditions for the structure of corporate control of insurance companies apply to the SSPE, as appropriate.
§ 1. For the purposes of obtaining authorisation to operate, the corporate name should indicate its corporate purpose, which is to act exclusively as an SSPE.
§ 2. Without prejudice to compliance with requirements determined in specific regulations for insurance companies, the suspension and cancellation of the authorization to operate imply a prohibition to accept insurance and reinsurance risks, to issue LRS and to raise funds.
§ 3. The transfer of each of the insurance and reinsurance risks from the SSPE to another with similar activity is permitted, provided that:
I - the SSPE that receives the transferred risk is previously authorized by Susep;
II - the transfer includes assets and liabilities of each one of the securitization operations in an individualized manner;
III - the transfer contract includes a clause providing that all rights and obligations arising from the original insurance and reinsurance risk acceptance contract entered into between the counterparty and the SSPE are secured;
IV - the investors holding the LRS have expressed their agreement with the transfer of the insurance or reinsurance risk;
V - the counterparty has agreed to the transfer of the insurance or reinsurance risk; and
VI - Susep's specific regulations have been complied with.
§ 4. Susep should previously approve the transfer of insurance and reinsurance risks pursuant to § 3, without prejudice to its subsequent validation.
CHAPTER II
THE OPERATION
Art. 5. The SSPE shall raise, by means of the issuance of LRS, the funds required as securitisation guarantees.
Art. 6. The transfer of risks to the SSPE may be made by direct negotiation with the counterparty or through a legal entity insurance broker or reinsurance broker.
Art. 7. The LRS should be on parity with the risks accepted by the SSPE by means of the risk transfer contract.
§ 1. The issued LRS will guarantee only one SSPE risk transfer contract.
§ 2. The risk transfer contract and subsequent issuance of the LRS must be associated with a single type of risk as referred to in item III of art. 2.
§ 3. The risk transfer contract may be entered into by more than one counterparty and the SSPE.
Art. 8. The LRS may offer its secured investors a remuneration based on the full profitability of the independent assets of the operation, or guarantee, under contractually defined terms, remuneration on the assets that make up the independent assets of the operation.
Sole paragraph. The LRS may generate a redemption value lower than its issuance value, depending on the occurrence of covered events arising from accepted insurance and reinsurance risks or due to its remuneration criteria.
Art. 9. The risk transfer contract should be made available by SSPE to those interested in acquiring the LRS.
Art. 10. The maximum maturity term of the LRS shall be ten years.
Art. 11. Secured investors holding the LRS must meet the criteria established for professional investors, under the terms of the regulations of the Brazilian Securities and Exchange Commission (CVM) that specifically deal with this matter.
Sole paragraph. The SSPE is responsible for verifying compliance with the provisions of this article.
Art. 12. The clauses of the LRS issuance document should provide, as a minimum, that:
I - the value of the independent assets constituted should be sufficient to meet the obligations of the guaranteed operation, under the terms of the risk transfer contract;
II - secured investors holding the LRS have no rights over the assets of the SSPE;
III - secured investors holding the LRS may not request the liquidation of the SSPE;
IV - the rights of LRS secured investors are subordinated to the obligations arising from the corresponding risk transfer contract entered into by the SSPE; and
V - the redemption of the LRS shall occur only after the extinction of the obligations related to the risk transfer contract, and there may be partial redemption, subject to the existence of sufficient funds to guarantee the remaining EMR.
Sole paragraph. The LRS issuance document should be clear and transparent about the general terms and characteristics of the note, including, as a minimum:
I - the identification of the corresponding risk transfer contract;
II - the conditions of the coverage of the risks accepted;
III - the characterisation of a claim;
IV - the value of the EMR;
V - the amount of the related expense, if any;
VI - the maximum term for extinction of the obligations related to the risk transfer contract;
VII - the term of validity of the risk transfer contract;
VIII - if any, mention of related parties when the SSPE belongs to the same economic group as the counterparty; and
IX - periodic information to be sent to the secured investors, in the form agreed upon between the parties.
Art. 13. The SSPE should communicate to Susep each operation of transfer of risks and subsequent issuance of the LRS, within a maximum of five days after the approval by its Executive Board and, if any, by the Board of Directors, and before the effective issuance of the LRS.
§ 1. The communication referred to in this article should contain at least
I - name and CNPJ number of the issuing SSPE;
II - name and CNPJ number of the counterparty, if any that transfers the insurance and reinsurance risks to the issuing SSPE;
III - registration number with the CNPJ of the securitisation operation;
IV - order number, place, issuance date and date of commencement of insurance and reinsurance risk coverage;
V - term of validity and the maximum term for extinction of the obligations of the risk transfer contract;
VI - type of cover and line of business;
VII - description of the risks ceded by the counterparty, including the places where they are located;
VIII - issued par value and EMR;
IX - currency of the issued par value;
X - guaranteed profitability and date of its demandability, with capitalisation permitted;
XI - remuneration for the operation to be paid to SSPE;
XII - description of the assets that will back the LRS;
XIII - identification of the contract or issuance deed of the LRS;
XIV - identification of the fiduciary agent, if any; and
XV - updated SSPE business plan containing the operations of the new securitization operation.
§ 2. The risk transfer contract, as well as the LRS, must be clear and incontrovertible as to the conditions of its coverage, including the effective assumption of risks by the SSPE and guarantee by the LRS.
Art. 14. The assumption of risk by the SSPE will only become effective after funds are raised through the issuance of LRS.
§ 1. The raising of funds through the issuance of LRS, together with that portion of the LRS premium passed on by the counterparty not intended for the remuneration of the SSPE, must correspond at least to the amount necessary to cover the EMR originally set forth in the risk transfer contract.
§ 2. Should the fund raising through the issuance of LRS not reach the amount required to cover the originally forecast EMR, the latter may be adjusted so that its terms are in line with the amount effectively raised.
§ 3. In the case of what is set forth in § 2, the SSPE must inform Susep of the adjustment made, within a maximum period of five days.
Art. 15. The SSPE should not be directly liable before the insured, participant, beneficiary or assisted party for the amount assumed when the counterparty is an insurance company, reinsurer, complementary pension fund entity or supplementary health operator, being the counterparty fully responsible for the adjustment and settlement of possible claims and payment of the respective indemnities.
Sole paragraph. In the event of insolvency that generates a decree of liquidation or bankruptcy of the counterparty referred to in the head of this article, the direct payment, to the insured, participant, beneficiary or assisted party, of the portion of the indemnity or benefit corresponding to the cession of the risk to the SSPE will be permitted, provided that the payment of the portion has not been made by the counterparty to the insured nor to the counterparty itself.
Art. 16. Any claims paid by the SSPE will result in a decrease in the guarantee requirement equivalent to the amount paid and thereafter the EMR will reflect the remaining risk exposure.
Art. 17. The risk transfer contract may provide for a restatement clause, subject to the existence of resources required to guarantee the EMR.
Sole paragraph. The issuance of LRS by the SSPE is permitted aiming to raise the necessary funds for the restatement of the coverage.
Art. 18. The risk transfer contract should set forth a maximum date for notification of claims by the counterparty, named as the expiry date of the insurance and reinsurance risk coverage.
§ 1. The date mentioned in this article must be equal to or less than the maturity date of the LRS.
§ 2. The securitisation operation should be exempt from any liability after the maximum date for notification of claims.
§ 3. Amendments in the terms of the LRS, including extension of the deadline for reporting claims, will be possible by agreement between counterparty, SSPE and secured investors.
Art. 19. The SSPE should keep effective control of the risk transfer contracts signed, the portfolio of insurance and reinsurance risks accepted, the intermediaries involved, the LRS premiums, the indemnities and recoveries of claims, as well as other relevant information, keeping them at the disposal of Susep.
CHAPTER III
THE ASSETS INDEPENDENCE
Art. 20. The insurance and reinsurance risk securitisation operation and subsequent financing through issuance of LRS should be independent in terms of assets, under the terms of the legislation in force.
Art. 21. The value of the independent assets of the operation must be sufficient, at the time of the effective obligation, to meet the commitments assumed with secured investors and counterparties of the securitization operation.
§ 1. The realisation of the counterparty's rights in each operation should not be limited to the guarantee forming part of the independent assets of the operation in question, in which case the SSPE's own assets should be liable in a subsidiary manner.
§ 2. In the event that the total value of the assets of the securitisation operation is less than the amount of its technical provisions, this insufficiency must be shown in the balance sheet.
Art. 22. The amount to be redeemed by secured investors should be equal to the independent assets of the insurance and reinsurance risk securitization operation after payment of outstanding claims, management costs and tax liabilities, if any.
§ 1. At the time of redemption, in the event that the independent assets of the operation are not sufficient to ensure the remuneration guaranteed by the SSPE to the secured investors thereto, the SSPE should supplement such assets in accordance with the terms agreed in the LRS.
§ 2. In the event that the obligation with the counterparty has not been fully settled after the maturity date of the LRS and the expiry date of the insurance and reinsurance risk coverage, the secured investors may not redeem the totality of their LRS funds.
§ 3. In the case of what is set forth in § 2, each securitisation operation should maintain sufficient assets to cover the EMR related to the remaining risk with the counterparty of the insurance and reinsurance risks of the LRS, under contractual terms.
CHAPTER IV
THE PRUDENTIAL RULES
Art. 23. The regulations on the segmentation of insurance companies, savings bonds companies, local reinsurers and open complementary pension fund entities for the purposes of proportional application of prudential regulation apply to the SSPE.
Section I
The Provisions
Art. 24. The insurance and reinsurance risk securitization operation should establish its technical provisions arising from the insurance and reinsurance risks assumed, based on the regulations of the National Council of Private Insurance (CNSP) and Superintendency of Private Insurance (Susep) applied to insurance companies.
§ 1. The technical provisions to be set up by the SSPE for securitisation operations are:
I - Unearned Premiums Provision (PPNG);
II - Provision for Claims Outstanding (PSL); and
II - Provision for Incurred But Not Reported Losses (IBNR).
§ 2. The PPNG calculation basis should correspond to the portion of the LRS premium passed on by the counterparty that is not intended for SSPE remuneration.
§ 3. The Liability Adequacy Test (TAP) does not apply to SSPE.
Art. 25. The SSPE should constitute, at the end of each month, a profitability guarantee provision (PGR), which covers the present value of the commitments assumed by the SSPE related to the profitability guarantee determined in the LRS.
Sole paragraph. The PGR should be obtained by the sum of the differences, if positive, between the value of the assets guaranteeing the obligations with the secured investors measured on the basis of the profitability guaranteed in the LRS, and the value of these assets measured at fair value at the end of the month of reference, of each securitization operation.
Art. 26. The SSPE must set up a technical insufficiency provision (PTI) with a value equal to the sum of the asset insufficiency values of each securitisation operation pursuant to § 2 of art. 21.
Art. 27. For the provisions dealt with in arts. 24 through to 26, the SSPE should keep a technical actuarial note, signed by the technical actuary responsible, at the disposal of Susep, with the details of the calculation methodologies used.
§ 1. The actuarial technical note with the calculation methodology must be delivered to Susep within a maximum of five working days from the date of receipt of the request.
§ 2. Susep may, at any time, as necessary in each specific case, determine to the SSPE the use of a specific method for the calculation of provisions.
§ 3. In the case of what is established in § 2, the SSPE can forward to Susep a request for the use of its own method, whose application will depend on the prior authorization of Susep.
Section II
Assets
Art. 28. The investments of assets to guarantee the technical provisions of each securitization operation and the technical provision of the SSPE should follow the regulations of the National Monetary Council (CMN), which provides for the rules that govern the investment of resources of technical reserves, provisions and funds of insurance companies, savings bonds companies, open complementary pension fund entities and local reinsurers.
Art. 29. In each securitization operation, in the investments of the assets that guarantee the obligations with the LRS investors, the SSPE should observe the criteria for investments and the prohibitions to investments and operations defined for insurance companies in CNSP regulations.
Art. 30. The assets backing the technical provisions, held in custody or deposited on behalf of the independent assets of each securitization operation or SSPE, as the case may be, may not be sold, promised to be sold or in any way encumbered without the prior and express authorization of Susep, and any sales made or encumbrances constituted in violation of this article are null by operation of law.
§ 1. The assets referred to in this article, except when abroad, must be registered, held in custody or deposited in accounts linked to Susep, kept with institutions authorized by the Central Bank of Brazil (BCB) or CVM that have an convention or technical cooperation agreement with Susep.
§ 2. Susep may grant authorization to SSPE to freely move the assets referred to in this article, provided that:
I - the SSPE is in good standing with Susep as regards its economic-financial situation and the coverage and adequacy of the LRS; and
II - each sale or redemption of securities corresponds to an immediate purchase or investment of a corresponding value on behalf of the independent assets of the securitization operation or of the SSPE, as the case may be, except in the case of existence of excess coverage.
Section III
The Capital and Adjusted Shareholders' Equity
Art. 31. The Minimum Capital Requirement (MCR) for the SSPE to operate should be equivalent to the higher of core capital and risk capital.
Art. 32. The SSPE must at all times maintain a capital base made up of the sum of the fixed portion, corresponding to the authorization to operate, and the variable portion, corresponding to the number of securitization operations in force.
§ 1. The fixed portion of the capital base is R$ 1,200,000.00 (one million, two hundred thousand reais) and the variable portion of the capital base corresponds to R$ 100,000.00 (one hundred thousand reais) per securitisation operation in force.
§ 2. The maximum value of the capital base of the SSPE, taking into account the segment in which it is classified for the purposes of proportional application of prudential regulation, will be limited to the amount of the capital base established in specific regulations for insurance companies operating throughout Brazil.
Art. 33. The risk capital for the SSPE to operate should correspond to the result of the following formula:
§ 1. For the purposes of the formula presented in this article, each CRlrsi portion, corresponding to the risk capital relative to the independent assets of a given securitization operation, should be calculated by means of the following formula:
§ 2. For the purposes of the formula presented in § 1, the concepts and notations below are considered:
I - CRlrs: risk capital relative to the independent assets of a given securitization operation;
II - CRlrs cred: credit risk capital relative to the independent assets of the securitization operation;
III - CRlrs merc :market risk capital relative to the independent assets of the securitization operation;
IV - EMR: maximum exposure to risk of the securitization operation;
V - VP: value of the independent assets of the securitization operation, considering the evaluation of the corresponding assets at fair value; and
VI - PTI: value of the technical provision for insufficiency referring to the securitization operation.
§ 3. For the purposes of the formula presented in this article, the CRsspe portion, corresponding to the risk capital relative to SSPE operations that are not associated with the independent assets of the particular operation, should be calculated by means of the following formula:
§ 4. For the purposes of the formula presented in § 3, the concepts and notations below are considered:
I - CRsspe cred :credit risk capital relating to the SSPE's own operations;
II - CRsspe merc :market risk capital relating to the SSPE's own operations; and
III - CR oper : operational risk capital relative to the total operations of the SSPE.
§ 5. The VP that exceeds the sum of the EMR and the amount ensured to the secured investors as a function of the profitability guaranteed in the LRS, if any, may be deducted from the value of the CRlrs.
§ 6. For the purposes of the formulas presented in §§ 1 and 3, the CRlrs cred and CRsspe cred portions should be calculated by means of the standard model for credit risk capital applicable to insurance companies, established in CNSP regulations.
§ 7. For the purposes of the formulas presented in §§ 1 and 3, the CRlrs merc and CRsspe merc portions should be calculated by means of the standard model for market risk capital applicable to insurance companies, established in CNSP regulations, with the following changes:
I - in the CRlrs merc , the cash flow related to the payment of the remaining balance of the independent assets of the LRS operation to the secured investors at the end of the operation must be expressly considered, taking into account the possible guarantee of profitability; and
II - when, due to the classification of the SSPE in segment S4, the simplified model for calculation of market risk capital regulated by Susep is used:
a) consider, as other liabilities, the cash flow referred to in item I of this paragraph, allocating it in the standard vertices according to the methodology defined in Annex XX of CNSP Resolution 432, of 12 November 2021, and considering as maturity the date set forth for the execution of the payment; and
b) to allocate the cash flow of obligations related to insurance and pension contracts according to the methodology defined in Annex XX of CNSP Resolution 432, of 2021, and considering as maturity term the half term of the LRS operation.
§ 8. For the purposes of the formula presented in § 3, the CR operportion should be calculated through the standard formula for operational risk capital applicable to insurance companies, established in CNSP regulations, with the following changes:
I - when determining the OPpremium portion and its components, the total LRS premiums written by SSPE should be considered, instead of earned premiums; and
II - when calculating the portion of the OPprovision and its components, the totality of the technical provisions constituted in each securitisation operation should be considered.
Art. 34. SSPE should at all times present Adjusted Stockholders' Equity (PLA) equal to or greater than the CMR.
Sole paragraph. The PLA of the SSPE should be calculated on the basis of the book net assets of the SSPE, without considering the independent assets of the operations, and using the requirements defined by the CNSP for calculating the PLA of insurance companies.
Section IV
The Accounting Standards and Independent Accounting Audit
Art. 35. The SSPE should comply with the Accounting Standards under the terms of the rules issued by Susep for insurance companies.
Sole paragraph. The list of accounts and the model for publication will be included in a manual published on Susep's website, including those relating to the securitization operation.
Art. 36. The record keeping for each securitisation operation should be segregated from the accounting of the SSPE.
§ 1. The SSPE should prepare the financial statements of each securitization operation, on the same base-dates as the financial statements of the SSPE, and send them to Susep, together with the latter, for publication on the electronic site of Susep.
§ 2. The financial statements of each securitization operation should be composed of a balance sheet, a statement of stockholders' equity of the operation and notes to the financial statements, in accordance with the publication model contained in the manual published on Susep's website.
§ 3. In the liabilities of each securitisation operation there should be a segregation of the amounts of the obligations with the LRS secured investors.
Art. 37. The financial statements of the SSPE should follow the requirements determined in specific regulations for insurance companies, including with regard to periodicity and disclosure.
Sole paragraph. The SSPE's explanatory notes should contain the financial statements of each securitisation operation.
Art. 38. The financial statements of the SSPE and of each securitization operation must be accompanied by an independent accounting auditor's opinion which addresses, among other matters, the adequacy to the accounting practices adopted in Brazil, applicable to entities authorized to operate by Susep.
§ 1. The SSPE may establish a statutory body called "Audit Committee" under the terms of the regulations applied to insurance companies.
§ 2. The SSPE that does not have an Audit Committee should appoint a statutory officer who does not conflict with the rules for the accumulation of functions established in the current regulations applied to insurance companies to be responsible for monitoring, supervising and complying with the rules and procedures for independent accounting audits.
Art. 39. The SSPE should send periodic information, composed of tables of statements, in the terms of the guidance manual for sending periodic information prepared by Susep.
§ 1. The tables referred to in this article should be delivered by the SSPE by means of a remittance protocol, always using its latest version and the latest version of the guidance manual for the remittance of periodic information, made available on Susep's website.
§ 2. The deadlines for forwarding the statements will be defined in the guidance manual for sending periodic information.
Section V
The Internal Controls and Risk Management
Art. 40. The officers of the SSPE, as well as the service providers engaged by it, must be independent from the counterparties and secured investors of the LRS.
Sole paragraph. In order to comply with the independence requirement, the officer mentioned in this article:
I - cannot be a secured investor of the LRS;
II - cannot be an executive officer or employee of the counterparty or of the secured investors, its direct or indirect parent companies, subsidiaries, affiliates or companies under common control; and
III - cannot be a spouse, a relative in a direct or collateral line up to the third degree, or by affinity, up to the second degree, of the persons mentioned in item II.
Art. 41. The SSPE should implement and maintain a Risk Management Structure, Internal Control System and Internal Audit activity in accordance with the specific regulations applicable to insurance companies.
Art. 42. The SSPE should adopt the requirements for prevention and fight against the crimes of "laundering" or concealment of assets, rights and values, or the crimes that may be related to them, as well as the prevention and restraint of terrorism financing, determined by Susep, in specific regulation, to the insurance companies.
Art. 43. The SSPE should adopt the cyber security requirements determined by Susep, in specific regulations, to insurance companies.
Art. 44. The SSPE should adopt the sustainability requirements determined by Susep, in specific regulations.
CHAPTER V
THE RECORDS
Art. 45. The LRS, when issued in Brazil, must be registered in registration systems or be the object of centralised deposit, in all cases in institutions authorised by BCB or CVM.
Art. 46. The LRS, when issued abroad, should be registered in a centralised registration and deposit system, in a central custodian, or regularly booked, in all cases, with institutions authorised by the respective authority in the country where the issuance is made.
Art. 47. Susep may regulate the registration of insurance or reinsurance risk operations in registration systems previously validated by Susep and managed by duly accredited registration entities.
CHAPTER VI
FINAL PROVISIONS
Art. 48. SSPE should be subject to the supervision of Susep, including with respect to securitization operations dealt with in this norm.
Sole paragraph. The administrative sanctions applicable to insurance companies apply to the SSPE.
Art. 49. Susep's authority with regard to the LRS is limited to the supervision of the powers ascribed to CNSP by the legislation in force.
Art. 50. The SSPE should be subject to the regulation of preventive prudential measures aimed at preserving the stability and soundness of the National Private Insurance System, the National Savings Bonds System and the Supplementary Pension Plan Regime and ensuring the solvency, liquidity and regular functioning of the supervised companies.
Art. 51. Susep is authorized to issue the complementary rules and guidelines necessary for the implementation of the provisions in this Resolution, and to apply, whenever possible, the regulations used for insurance companies.
Art. 52. Amending CNSP Resolution No. 388, of 8 September 2020, which shall come into force with the following amendments:
"Art. 2. .......................
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II - .............................
a) for insurance and reinsurance operations, premiums written, as defined in the prevailing accounting standard;
b) for pension funds operations, commercial contributions, net of returns and cancellations;
c) for savings bonds operations, the collection of savings bonds contributions, net of returns and cancellations; and
d) for insurance and reinsurance risk securitization operations, the Insurance Risk Note (LRS) premium, as defined by the specific regulation.
III - benchmarking parameters: values used for classifying the supervised company in the segments defined in this Resolution, as set forth in art. 4, corresponding to:
a) premiums or technical provisions, for insurance, reinsurance, pension funds and savings bonds operations; or
b) premiums, for insurance and reinsurance risk securitisation operations.
...................................
Art. 3. .......................
...................................
II - ..............................
§ 1. For the purposes of the provision in item I of the head of this article, the consolidated benchmarks should be calculated by adding the individual benchmarks of each supervised company belonging to the prudential group, and, in the case of Special Purpose Insurance Company (SSPE), the independent assets of each operation of insurance and reinsurance risk securitization, in compliance with the accounting standards established by Susep and the adjustments established in this article.
..................................
Art. 4. .......................
...................................
§ 1. S1 is composed of the supervised companies that have, individually or together with other supervised companies of the same prudential group, as set forth in art. 3, the following benchmarks:
I - technical provisions equal to or greater than 6.0% of the total technical provisions of the entire market supervised by Susep, except in the case of SSPE;
....................................
§ 2. S2 is composed of the supervised companies not included in S1 that have, individually or together with other supervised companies of the same prudential group, as set forth in art. 3, the following benchmarks:
I - technical provisions equal to or greater than 0.2% of the total technical provisions of the entire market supervised by Susep, except in the case of SSPE;
....................................
§ 3. S3 is composed of the supervised companies that are not classified in segment S4 and that have, individually or together with other supervised companies of the same prudential group, as set forth in art. 3, the following benchmarks:
I - technical provisions lower than 0.2% of the total technical provisions of the entire market supervised by Susep, except in the case of SSPE;
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§ 4. .............................
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IV - ..............................
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c) insurances of the Property group, with the exception of the classes of loss of profits, engineering risks, miscellaneous risks and named perils and operational risks, whose term of validity of the policy, certificate or ticket does not exceed 1 (one) year;
d) Personal insurance and pension plans in the simple distribution financial system, whose term of validity of the policy, certificate or ticket does not exceed 1 (one) year; or
e) securitization of insurance, pension plan, supplementary health, reinsurance or retrocession risks.
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§ 6. The values of premiums and technical provisions of the entire market supervised by Susep will correspond, respectively:
I - the sum of the individual premium values of all the supervised companies in operation, and, in the case of SSPEs, of all the independent assets of the insurance and reinsurance risk securitization operations, regardless of the specific market segments in which they operate, and being not applied the adjustments set forth in art. 3 of this Resolution; and
II - the sum of the individual amounts of technical provisions of all operating supervised companies, with the exception of SSPE, regardless of the specific market segments in which they operate, and being not applied the adjustments set forth in art. 3 of this Resolution.
..................................... " (New Wording)
Art. 53. The "Table 3: Definition of Counterparty Types" of art. 3, Annex XIV of CNSP Resolution 432, of 2021, shall come into force as follows:
|
Types of counterparty |
|
|
Type 1 |
insurers, EAPCs, savings bonds companies and local reinsurers. |
|
Type 2 |
admitted reinsurers. |
|
Type 3 |
occasional reinsurers. |
|
Type 4 |
special purpose insurance company (SSPE). |
Art. 54. CNSP Resolution 396 of 11 December 2020 is hereby revoked.
Art. 55. This Resolution shall enter into force on 2 January 2023.
ALEXANDRE MILANESE CAMILLO
Superintendent
(Official Gazette DOU of 21 December 2022 - pages 223 to 226 - Section 1)
