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ARTICLE · 12 MARCH 2008

The Minimum Capital Required For Insurance Companies

Barbosa, Mussnich & Aragao Advogados
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On December 26, 2006, the National Private Insurance Council ("Conselho Nacional de Seguros Privados" – CNSP), the government agency responsible for insurance and private pension plan policies in Brazil, issued CNSP Resolution no. 155, establishing more rigorous rules on the minimum capital requirements companies must meet to be authorized to operate as insurers.

BrazilInsurance
Eduardo Lima
Eduardo Lima
Sabrina Machado
Sabrina Machado

On December 26, 2006, the National Private Insurance Council (Conselho Nacional de Seguros Privados – CNSP), the government agency responsible for insurance and private pension plan policies in Brazil, issued CNSP Resolution no. 155, establishing more rigorous rules on the minimum capital requirements companies must meet to be authorized to operate as insurers.

Currently, the minimum capital requirements for insurance companies in Brazil is determined according to their line of products and the geographical regions in which they are authorized to operate. Under CNSP Resolution 73/2002, for example, insurers authorized to operate throughout Brazil must have a capital of no less than R$7.2 million.

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