While directors and officers (D&O) liability insurance has existed in Brazil for some time, it has historically represented a very small part of the local market. However, with the nation’s steadily growing economy, greater foreign investment and the global credit crisis, things may be changing. According to numbers recently released by SUSEP, the Brazilian insurance regulator, premiums paid for D&O liability insurance grew by 61.7% between January 2007 and September 2008. By comparison, the overall Brazilian insurance market grew only 5.2% over the same time period.
In other Brazilian news, the mayor of Rio de Janeiro, Eduardo Paes, recently stated that Rio’s municipal government remains committed to establishing a reinsurance hub in the city by offering tax breaks on reinsurance contracts signed in the municipality. According to reports, the plan calls for services tax ISS on reinsurance contracts signed within the city to be reduced from 5% to 2%. SUSEP does not appear to be opposed to the plan, and has previously supported the concept of a special economic zone for reinsurance.