When regulatory environments progress, they do so with
uncertainty taking some steps forward, some back, and having
periods of silence. The publication of National Council of Private
Insurance (CNSP) Resolutions N. 321 and 322 (the last one was
replaced by the CNSP Resolution No. 325) seem to duly fit this
scenario.
In this context, to understand the impacts of the new rules and
their relevance, we will make some comments about the Brazilian
reinsurance regulation, including a brief historical introduction
to the reinsurance activity in Brazil and information about the
most important events since the opening of the Brazilian
reinsurance market.
I. The Reinsurance Monopoly
The first major watershed for the Brazilian insurance market was
the creation of the former Reinsurance Institute of Brazil (IRB) in
1939. That was a very important time for the country's economy
in which strong industrialization and modernization of social
relationships demanded a larger
