Risk management group opposes insurance changes in Brazil

The International Federation of Risk & Insurance Management Assns. Inc. has called on Brazil to reconsider changes in law that risk managers say will make insurance more expensive and may jeopardize large projects from getting sufficient coverage.

IFRIMA, which represents 23 risk management associations, including the New York-based Risk & Insurance Management Society Inc., echoed the call this month made by the Brussels-based Federation of European Risk Management Assns.

The new rules, which are to go into effect March 31, would prevent insurers from ceding reinsurance business to intragroup reinsurers. They also would require 40% of reinsurance business to be underwritten by local reinsurers.

In a statement Friday, IFRIMA called on the Brazilian government to revoke the changes, which were issued by the country’s National Board of Private Insurance and have not been enacted by Parliament.

IFRIMA said it believes the rules would mean insurance would become more expensive for buyers in Brazil and would be “harmful to Brazil’s interests in having a modern insurance system.”