The American Council of Life Insurers (ACLI) is part of a coalition that is asking the government of Brazil to change new reinsurance regulations.
Insurance groups from Europe, Asia and the Americas are joining to object to the new rules, according to the ACLI, Washington.
In addition to the ACLI, the list of U.S. groups that have signed a protest letter include America’s Health Insurance Plans, Washington, and several U.S. property-casualty insurer and p-c producer groups.
The groups are blasting rules issued by the National Private Insurance Council of Brazil — resolutions 224, 225 and 232.
Rule 224 would have prohibited insurers in Brazil from transferring premiums to related companies.
Rule 232 modified Rule 224 to let insurers transfer 20% of the premiums from a product line to related companies.
Rule 225 requires insurers in Brazil to assign 40% of their risk to local reinsurance companies.
Officials in Brazil intended for the rules to help local insurers, reinsurers and consumers, but, instead, if implemented as written, they are likely to lead to dramatic reductions in the availability of locally written insurance in Brazil, the insurance groups say in a letter