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Goldberg, Ilan --- "Brazil: The Transition of Law and Regulation from State Control to Market Freedom" [2012] ELECD 181; in Burling, Julian; Lazarus, Kevin (eds), "Research Handbook on International Insurance Law and Regulation" (Edward Elgar Publishing, 2012)

Book Title: Research Handbook on International Insurance Law and Regulation

Editor(s): Burling, Julian; Lazarus, Kevin

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849807883

Section: Chapter 27

Section Title: Brazil: The Transition of Law and Regulation from State Control to Market Freedom

Author(s): Goldberg, Ilan

Number of pages: 24

Extract:

27 Brazil: the transition of law and regulation from
state control to market freedom
Ilan Goldberg



1. INTRODUCTION

In recent years there has been considerable commercial interest, including by insurers, in
the so-called BRIC countries (Brazil, Russia, India and China). This chapter provides an
outline of the insurance legal and regulatory regime in one of those countries. Brazil
provides a useful case-study for those with a wider interest in insurance, having recently
transitioned (at least somewhat) between two very different models of insurance regula-
tion. Until recently, insurance in Brazil was closely controlled by the state and reinsurance
was largely in the hands of a state-owned monopoly. Now, insurance and reinsurance are
characterized to a much greater extent by market freedom. This transition has been slow
and not always smooth and there is arguably more work to be done. Nevertheless it has
largely been seen as successful.1
The chapter begins with an introduction to the Brazilian legal system. It then outlines
the framework of laws and bodies that govern insurance in Brazil. While foreign insurers
are free to set up locally approved insurers to write direct business,2 in practice most
foreign participants are likely to access business as reinsurers. Given the recent changes in
this area the chapter goes on to provide a more detailed discussion of how reinsurance is
dealt with in Brazil, including some brief details of the political and legislative history
that led to the current regime.


2. THE BRAZILIAN LEGAL SYSTEM
...