The National Superintendence of Private Insurance ("SUSEP") intends to make the procedures for the incorporation of insurance companies, local reinsurers, capitalization and pension funds entities faster. The local regulatory authority approved, ad referendum of the CNSP - National Council of Private Insurance, a change in item II of Article 5 of the Annex to Resolution 166 of 2007, which deals with the minimum capital required for companies to work in these sectors. This measure is yet to be examined by the CNSP’s board members.

The intention of the regulatory authority is to make these procedures less bureaucratic, reducing the number of required documents and rendering technical analysis thereof more precise and objective.

The rule still in force provides that the actuarial technical note is a mandatory document for applications for the incorporation of companies. This note contains the financial estimates applicable to the portfolios that the company intends to operate, these data being used to calculate the minimum capital required for a company to be incorporated and to operate.

In the amended version of the Regulation, which has not been approved yet, this note will not be necessary for attaining SUSEP’s prior approval, given that Resolution CNSP 282, which was published in the beginning of this year, establishes that the minimum capital required must be the greatest among the capital base, the risk capital and the solvency margin, and, since for a company to be incorporated the capital base will always overcome the others, SUSEP has come to the conclusion that it would be unnecessary to calculate the risk capital.

Therefore, the actuarial technical note will only be required after the prior approval has been given to operate by SUSEP and prior to the beginning of activities.