RIO DE JANEIRO, BRAZIL – December 15 this year will mark the debut of Open Insurance in Brazil, according to documents published in the Federal Gazette on Wednesday, July 21.
The papers detail the guidelines for the implementation of the Open Insurance System. According to the regulatory agency for insurance SUSEP, the rules establish conditions to allow consumers to access and share their data with other insurers or third parties, safely, quickly, accurately and conveniently – and when they wish.
“The data may be used to develop new products and services that meet the current and future needs of insurance, pension plan and capitalization consumers,” the agency’s note says.
Like Open Banking, Open Insurance is expected to be implemented in stages and gradually, “aiming at a better organization and predictability in the sector.” The first stage, as of December 15, 2021, will involve sharing companies’ public data related to products and service channels.
In the second stage, scheduled to begin on September 1, 2022, customers will be able to share their personal data. The third stage, which provides for the execution of services through the ecosystem, will kick off on December 1, 2022, almost a year after the start of the first stage.
“Insurance has a unique feature in protecting and providing financial support to people in times of vulnerability or in an event that can place them in financial distress. In order to fulfill this goal, insurance products must reach the great mass of the population in a simple, transparent and, above all, affordable way,” says SUSEP superintendent Solange Vieira.
With the guidelines published today, the agency says it intends to ensure the sector’s development, guaranteeing security and control in access to consumer data, while expanding interoperability in the insurance market, the offer of products and innovation.
The new model is expected to simplify matters for consumers – such as the option of consolidating their financial lives, including insurance, pension plans or capitalization, thereby facilitating organization and planning.
According to SUSEP, another feature is the availability of automated and consolidated access to service channels and networks related to products, service providers and sales companies, “increasing consumers’ knowledge about the insurance instrument, enhancing their perception of the advantages and opportunities arising from its mission.”
According to SUSEP director Eduardo Fraga it will also be possible to make personalized offers according to the consumer’s profile, at the appropriate time and under his/her control. “When necessary, in the occurrence of an event that the insurance proposes to repair, it is possible to achieve a faster resolution, including services that positively surprise the consumer, such as the more agile payment of claims, even automatically, directly into his/her account,” he says.
According to SUSEP, this will be achieved through the integration of technology platforms and infrastructure. “Along with Open Banking, Open Insurance enables the creation of the so-called Open Finance,” the note says.
Open Banking previously included in its scope insurance and pension products distributed through the banking channel. “Therefore, the regulation of Open Insurance within the insurance industry is essential for all insurers to be able to be part of Open Finance, thereby allowing their consumers to enjoy all the advantages available through the ecosystem,” SUSEP reports.
Information on the topic can be found in an area of SUSEP’s website dedicated to Open Insurance, designed to facilitate the monitoring of the initiative’s progress. The address is openinsurance.susep.gov.br.