Brazilian insurance regulator publishes guidelines on sustainability requirements for the insurance sector
The Brazilian Superintendence of Private Insurance (“SUSEP”) published Regulation No. 666/2022, setting forth sustainability requirements applicable to the Brazilian insurance sector. Its goal is to establish guidelines for management of risks that are directly related to ESG policies of insurance and capitalization companies, local reinsurers and pension funds.
Pursuant to the new requirements, regulated entities must ensure that sustainability risks are properly managed, particularly by preparing a triennial materiality assessment identifying, assessing and classifying the risks to which the entities are exposed – not only in relation to their activities and operations, but also in relation to their products, services, clients, suppliers and service providers.
Another point of attention concerns the obligation to prepare a sustainability policy containing principles and guidelines to ensure that sustainability-related aspects – listed in the regulation – are considered both in the ordinary course of business and in the relationship with stakeholders. In addition, until 30 April of each fiscal year, regulated entities must prepare and publish a report addressing the effectiveness of their respective sustainability policies, as well as the management of the risks to which they are exposed.
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