Evolving D&O landscape in Brazil

Empty conference room seen from above, 3D Rendering

SUSEP Regulation 553/2017

On 23 April 2017, SUSEP, the Brazilian insurance authority, issued its suspension of Regulation 541/2016–its most recent regulations on D&O insurance. In its stead, SUSEP issued Regulation 553/2017, which aims to re-establish minimum requirements that D&O wordings in Brazil must comply with, effectively replacing the requirements issued under 541/2016. We view this new regulation as SUSEP’s much-needed response to the lack of appropriate and specific regulations on the topic.

Regulation 553/2017 expressly states, under Article 4, that individuals are now entitled to purchase D&O policies directly. Purchasing D&O policies used to be an exclusive right of legal entities who would purchase the policies as policyholders while their directors and officers were designated as the insured. How (re)insurers and D&O wordings will adapt to this new reality is yet to be answered. We also note that this new policy catered directly to individuals must have its wording approved by SUSEP.

Regulation 553/2017 also holds that insurers are able to offer a broader definition of Insured Person, to be taken out as additional coverage, so as to encompass service providers hired by the policyholder and/or the insured, e.g. lawyers, accountants, etc. There is also the possibility to broaden the definition of Insured Person to provide coverage for depositaries, liquidators, and other administrative intermediaries.

The regulation also establishes new rules related to Side B cover. D&O insurance is typically offered via three coverages—Side A, Side B, and Side C:

  • Side A coverage reimburses individual D&Os (insureds) for any indemnifiable covered losses they have incurred personally.
  • Side B is an additional coverage that is taken out to reimburse the entity (policyholder) for indemnifiable financial losses it has incurred on behalf of the insured.
  • Side C coverage is an additional coverage that is taken out by the entity itself that reimburses the entity for any indemnifiable financial losses it has suffered as a result of a securities action brought against the entity.

Read More:  2017 SUSEP D and O Brazil

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Upcoming Seminar on October 19: Aviation in Latin America

Close up commercial airplane-1.jpg

Kennedy’s will be hosting a new seminar as part of its London Market series.

Fabio Torres, Partner in Kennedys Brazil, will be speaking about Aviation in Latin America covering the following:

  • an overview of the Brazilian aviation market and important legislation
  • LatAm aviation market – coverage and policy issues

October 19, 2017

8:30 am                      Registration and breakfast

8:45 – 9:45 am           Seminar



25 Fenchurch Avenue



Hope to see you there!


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Trans Re is hiring

Trans Re logo

Trans Re shared with us the following opportunity available in its Miami office:

Sr. Underwriter-Property Treaty


The Underwriter for the Latin American & Caribbean Division of Transatlantic Reinsurance Company will be responsible for the following:

  • Evaluates large, complex risks associated with underwriting a Property Treaty book of business and decides (within approval authority) to accept or decline.
  • Responsible for maintaining a profitable book of business by evaluating and identifying profitable relationships in the Latin American Division,
  • Negotiates and underwrites new and renewal (Property) risks.
  • Makes independent sales calls to market reinsurance offerings and prepares proposals for more routine treaty situations.
  • Develops negotiation strategies to market offerings and prepares proposals
  • Maintains ongoing awareness of Industry trends and issues as well as the needs of current and prospective clients


  • 5-7 years of Property Treaty insurance/reinsurance experience.
  • Knowledge of insurance/reinsurance underwriting concepts, practices, procedures and techniques
  • 25% travel to Latin America and the Caribbean
  • Marketing abilities
  • Computer literate (Word/Excel/PowerPoint)
  • Bachelor’s degree required, MBA desirable
  • Ability to multi task, highly organized, detail oriented, self starter
  • Good analytical skills as well as sound financial analysis skills
  • Bilingual (English/Spanish)

For immediate and confidential consideration, please email your resume to careers@transre.com.

We are an Equal Opportunity Employer (EOE) and we support diversity in the workforce.

We are a leading international reinsurer, operating in 25 cities worldwide. Since 1977 we have built our business on the principles of offering constructive flexible solutions backed by rock solid financial security, and we have grown into one of the world’s leading reinsurers by coupling a global perspective with local support.

Our Vision Is to be the first-choice provider of reinsurance to our clients worldwide.  We strive to create unmatched value for our customers, colleagues, business partners, and shareholders as we contribute to the growth of sustainable, prosperous communities.  We achieve this through our Core Values:

Integrity. Work honestly. Enhance our reputation

People. Develop diverse talent. Reward excellence

Customer Focus. Anticipate their priorities. Exceed their expectations.

Respect. Value all colleagues. Collaborate with one another.

Entrepreneurship. Seize opportunities. Innovate for and with customers.

Performance. Be accountable. Manage risks. Deliver our strength.


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Upcoming Dive In Miami Event

Dive In pic 1

Dive In Miami would like to invite you to attend the Festival for Diversity and Inclusion in Insurance.

Dive In is a global festival for diversity and inclusion in insurance that aims to highlight the business case for diverse and inclusive workplaces and provide practical ideas and inspiration for how to create positive change. All events are completely free! You can register or learn more about the events via the links below:

Dive In Miami – Evolution of Leadership in a Diverse Workplace

A riveting panel discussion focused on leadership dynamics and the impact of D&I in the workplace with a networking reception to follow.

28 September, 16:00 – 19:00

The Conrad Miami 1395 Brickell Ave, Miami, FL 33131, Miami, United States

Learn more and Register

For more information on Dive In visit http://diveinfestival.com. Please spread the word and encourage your colleagues and network to attend. Looking forward to see you there.

Sponsored by:

sponsors dive in

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Hurricane Harvey: Keeping sight of Texas’ Prompt Payment of Claims Act

As the first major hurricane to make US landfall since 2005 and with a ferocity reminiscent of Katrina, Hurricane Harvey has impacted a wide segment of the property, construction, and energy (re)insurance market located within the coastal areas of southeast Texas, Houston and its surrounding counties, and the Gulf Coast. The early projections anticipate USD 40 – 50 billion in losses, and years of restoration.

In recent days, all associated with the (re)insurance market have closely followed the developments associated with Hurricane Harvey. As the first major hurricane to make US landfall since 2005 and with a ferocity reminiscent of Katrina, it will no doubt remain a focal point for the (re)insurance market in the weeks and months ahead.  As the market responds to the devastating damage caused by the hurricane, as well as the subsequent rainfall and flooding, the market should keep sight of the critical provisions of the Texas Insurance Code.  Texas has a “Prompt Payment of Claims Act” establishing specific limited periods of time to acknowledge receipt of a claim, begin the investigation, and request information.  The Act also limits the time insurers have to make claim decisions, and issue payments after an insurer determines it will pay the claim.  The Act obligates insurers to effectuate prompt, fair, and equitable settlements, and imposes penalties on insurers who run afoul of these provisions.  While a new law going into effect on September 1 moderates some of the penalties and provisions associated with weather-related claims, risks remain. As the market addresses the exposures covered by the broad scope of implicated policies, it will need to mindfully adhere, and document that adherence, with the proscribed practices to effectively handle the claims and minimize their extra-contractual risk.

Kennedys CMK is here with straightforward and supportive advice to assist the market with its good faith compliance with all applicable laws and implicated policies. Kennedys CMK has offices in Texas, Illinois, New York, New Jersey, Pennsylvania, and Florida.  In addition, Kennedys is available around the globe where our clients’ interests or policies may involve exposures arising from Hurricane Harvey.

Dan Sanders is a Partner in our Miami and Philadelphia offices and focuses on representing (re)insurance clients with the evaluation, negotiation, and litigation of multi-national (re)insurance disputes, and counsels clients on insurance coverage and good faith claim handling. http://www.kennedyslaw.com/dsanders/

Daisy Khambatta is a partner in the Austin office and focuses on representing clients in all aspects of insurance and reinsurance – including claims counseling, litigation and arbitration, regulatory issues and government relations, and formation of captive insurers and risk retention groups. http://www.kennedyslaw.com/dkhambatta/

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Upcoming PLUS SE Seminar in Miami International Management Liability: Claim Trends and Market Developments


The Professional Liability Underwriting Society, Chapter South East (PLUS SE) is hosting a panel discussion about the various aspects and latest developments in international Management Liability and how the future landscape will look like through the perspective of a broker, a claims adjuster, an underwriter and an attorney.

The focus will be on the trends appearing in the different industry sectors of buyers of Management Liability Insurance, including Directors & Officers.

Claims management topics will include the frequency and severity of claims.  The underwriting topics will include the soft-market/hard-market outlook for the next five years, and an overview of the fastest developing countries in terms of litigation.  The brokers’ topics will include the various Management Liability products and the regulations on same which vary by country.  The legal topics will include coverage litigation and claim defense in foreign jurisdictions.


Laura T. Sanchez, LLB PsDIns. CA, Claims Manager, Willis Towers Watson

Natalia Char, Head of Financial Lines & Financial Industry Leader, Willis Towers Watson

Kenia Delgado – Director, Dual Specialty Underwriters

Scott Mission – Pioneer Underwriters

Alex Guillamont – Head of Latin America and Caribbean, Kennedys

Date: August 30th 2017


12:30 pm – 1:00 pm Registration

 1:00 pm – 4:00 pm Seminar

4:00 pm – 6:00 pm Reception with food and drinks

Where: Conrad Hotel 1395 Brickell Ave, MIAMI, FL 33131


Members: $25                   Non-Members: $35

Register online now or download the event registration formsee you there!

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Highlights of the third annual Latin American Claims (re) Insurance Forum

The third annual Latin American Claims (re) Insurance Forum, held on 15-18 May 2017 hosted by Kennedys and QLDG at the Conrad in Miami, was attended by in excess of 170 delegates from around the globe.  The mix of delegates included as many as 50 industry-leading speakers from companies, including AIG, AGCS, Chubb, FM Global, Liberty, several Lloyd’s syndicates, Munich Re, QBE, Scor, Sura, Swiss Re, Talbot, Trans Re and Zurich. This year welcomed more cedents from the region, which provided greater insight into the local issues on the ground in various countries coupled with the larger international re-insurance perspective and how the two intertwine.

Forum 2017 full room 2

The conference opened with a discussion on major challenges and opportunities foreseen by carriers in Latin America in the next 5-10 years, with a panel consisting of presidents and SVP’s from the largest players in the local market. With technology identified as one of the key risks and also opportunities, further panels also focused on technology.

For example, one of the key risks we face on a global scale is cyber-crime, as was illustrated only days earlier with the Wannacry Ransomware attack, a cyber-attack that hit organizations in more than 100 countries within the span of 48 hours. More than 130,000 systems were compromised. This is one example of how cyber-attacks have recently become a real threat and nowadays are seen as one of the most profitable forms of crime in the world. There was therefore an essential cyber session about the main distinctions between crime/BBB and cyber. As Latin America and the Caribbean have the fastest growing Internet population in the world, but still lack domestic regulation and there is also a gap in terms of taking a coordinated response to cyber-attacks, this panel was especially thought provoking for those attending from the region and they summarized the main steps that should be followed when a breach is discovered. The panel also provided some examples of the consequences of a data breach, like fines imposed by regulators and shareholder derivative actions and they analyzed real cases of cyberattacks in the US. Some cases have already been scrutinized by the US Courts, and the decisions held so far can be used as a parameter to engage a legal discussion about the interpretations of Cyber wordings and, also, to support the move towards better policy wordings and products.

There was also a panel on some new developments in technology such as how drone usage presents unregulated risks and the risks associated with that. Additionally, there was a captivating and engaging panel on Insuretech, which gave us a peek into the future world of tomorrow by not only depicting technological advances in the insurance industry but the arising challenges that accompany them. Juxtaposing the agricultural and industrial revolutions, the Ai revolution, despite being in its infancy, proves to have the potential to change not only the face of insurance markets but also the wider world. Exemplified by Ai software that within a matter of seconds manages to underwrite risks and process claims, such advances strike with a double-edged sword. On the one hand, they offer faster, cost-efficient options devoid of human error, but this needs to be weighed against the other end of the scale, where such technological advances come at a cost as certain roles within centuries-old professions become obsolete to a certain extent. Ultimately, Insuretech ponders the question: on the balancing scale, does the price of progress outweigh its benefit?

Panelists also addressed catastrophic losses, which looked at all sorts of risks, including the recent riots in Mexico, for example, where lessons learned in the handling of the resulting losses, as well as related underwriting topics were discussed.  The practical side of The Forum also discussed pitfalls identified by claims handlers on losses at manufacturing concerns which ultimately ended up in arbitration tribunals.

The Forum also presented real case studies on complex property damage and time element scenarios prevalent in LatAm.  In a panel called “the Perfect Storm” panelists donned their umbrellas and raincoats to discuss what was perhaps the largest claim in LatAm during 2016.  The case discussed was a representative example of a major property loss which occurred at a critical time resulting in a very large property damage and time element exposure.  As in the movie of the same title, insurers and their appointed experts worked together to reinstate the affected operation in record time.  With the rapid development in the region, the risk of other “Perfect Storms” is always present.  Most lessons learned on that case apply to all losses.

The Forum closed with the annual discussion on construction risks in LATAM which sought to introduce concepts and products (such as professional indemnity insurance, decennial cover, latent defects insurance and the like) that are used elsewhere in the USA and in Europe, which should, in certain projects, be required and which may help to avoid some of the recurring problems encountered in the region. As always, significant discussion surrounded the problem of lack of design cover in high value complex projects, and lack of preparation at the outset such as the use of scale models. Other ways to improve pre-construction planning were discussed and this included Building Information Modelling (“BIM”) and how it could be used more in LATAM, and a healthy debate ensued regarding the benefits and the challenges of using BIM.

The final session on surety also gave delegates an insight into the way the “Seguro de Caución”, a new and relatively untested form of surety product in Mexico regulated by the Ley de Instituciones de Seguros y Fianzas, would operate in comparison to the traditional form of surety bond seen in Mexico. This was illustrated by analyzing the underwriting and claims position, using a case study of Line 12 of Mexico City’s Subway. In summary, the conclusion was that the underwriting process was substantially the same but the nature of the bond would change from being a conditional surety bond to an unconditional “on-demand” Seguro de Caución. The main goal of the Seguro de Caución being the immediate payment of the claim.

Finally, whether it was the engaging panels or the networking opportunities at lunch, coffees or cocktails, there was always a sense of positive energy about the future of the industry in Latin America that reverberated around the room. The save the date for the fourth annual Latin American Claims (re) Insurance Forum will be announced soon.

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