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New guidelines a turning point for large-risks insurance market


In March 2021 the National Council of Private Insurance published Resolution 407/2021, establishing new guidelines for large-risks insurance contracts.

Resolution 407/2021 was issued following feedback on Draft Resolution 18/2020, which was circulated to the market for discussion in accordance with the Superintendence of Private Insurance's (SUSEP's) standard procedure (for further details please see "Welcome changes to large-risks sector").

According to SUSEP, Resolution 407/2021 aims to deregulate the Brazilian market in order to increase the offer of different and bespoke insurance solutions to sophisticated policyholders. This should increase the scope of insurance cover in the local Brazilian market.

Changes to draft resolution

Resolution 407/2021 is largely similar to Draft Resolution 18/2020. The main differences are as follows:

Directors' and officers' liability insurance is no longer classified as large-risks insurance.

Stop-loss insurance is no longer classified as large-risks insurance.

While Draft Resolution 18/2020 classified ports and terminals insurance as large-risks insurance, Resolution 407/2021 classifies all marine insurance as large-risks insurance.

While Draft Resolution 18/2020 provided for a maximum limit of guarantee of more than R20 million (approximately $3.82 million) for a contract to be considered a large-risks insurance contract, Resolution 407/2021 provides a lower limit of R15 million (approximately $2.86 million).

Resolution 407/2021 includes additional minimum mandatory clauses that should be included in all large-risks insurance contracts and were not contemplated in Draft Resolution 18/2020 – namely, clauses which:

specify the maximum limit of indemnity and/or maximum limit of guarantee;

reference the existence of concurrent policies; and

specify loss of rights under the policy.

Freedom of contract continues to be the rule in large-risks insurance contracts, and Resolution 407/2021 confirms that parties are free to determine the terms of their contract, with minimum intervention from SUSEP.

As anticipated in Draft Resolution 18/2020, Resolution 407/2021 provides that parties must agree in advance which dispute resolution mechanisms will apply. In the event that the parties agree on arbitration, Resolution 407/2021 suggests that they specify the chamber and the applicable arbitration rules in the arbitration clause.


Resolution 407/2021 is a turning point for the Brazilian large-risks insurance market as it separates this type of product from mass insurance, whose regulations tend to be stricter and oriented towards consumer protection.

The new guidelines are a welcome development, particularly as they treat sophisticated parties as equally qualified players which are free to negotiate the terms of their contract. Resolution 407/2021 is expected to create an environment which fosters innovation, acknowledging the importance and specificities of the large-risks sector.



For the fourth year, Schalch Sociedade de Advogados is part of the select group of Brazilian insurance offices and is recommended by The Legal 500 Latin America 2021.

Leading Firm

The firm is featured in the Chambers & Partners 2021´s edition. The strong focus on the insurance and reinsurance sectors, expertise and deep involvement in the cases were some of the highlights in the publication's recognition of the work.

Chambers Latin America


SSA is recommended again by The Legal 500 Latin America 2019 in the insurance area.

Chambers Latin America

Schalch was recommended in the Ranked Firm 2021 of the Best Law Firms in Insurance and Reinsurance in Brazil, carried out by the important Leaders League French Editorial.

Chambers Latin America


For the second year, SSA is recommended by The Legal 500 Latin America 2017 in the insurance area.

Leaders League


SSA is recommended by The Legal 500 Latin America 2016 in the insurance area.

Leaders League


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