16 00 24.09.09 osvaldo do nascimento grand2
TRANSCRIPT
CReCER’09Latin America and the Caribbean
Averting Contagion:A Look at the Insurance Sector
Osvaldo do NascimentoSeptember, 24th, 2009
BrazilArea (km2): 8,511,965
GDP 2008: US$ 1,2 trillion
Population 2007: 191.8 million
2
About Brazil...
InflationIPCA accumulated in 12 months
3Source: Brazilian Central Bank and IBGE
4,36% Aug 2009last 12 months
% p.y.
Nominal and Real SELIC Rate(in 12 months, % p.y.)
Interest Rate
4Source: Brazilian Central Bank
SELIC (Nominal Rate)Real Interest Rate
8,75%
4,25%
% p.y.
Net Debt
Source: Brazilian Central Bank5
Net debt of public sector (% GDP)
Net debt/GDP
Dollar denominated Debt/GDP
44,06%
-9,24%0,00
%
International Reserves
Source: Brazilian Central Bank
US$ 221,3 Billion
6
• Public sector is net foreign creditor since 2006• Brazil is investment grade since 2008
Sep, 10th,2009
(Distribution by Insurance Category – 2008)
Source: CNSeg/SUSEP
(*) Considers the VGBL revenue(**) Total revenue 2008 in BR$ converted in US$ on dec/08 (***) Do not consider closed pension funds revenue
Total Premium Revenue 2008:US$ 41,2 billion (**)
Insurance Market Revenue
(***)
Pension FundsTotal Asset Under Management 2008:
US$ 252,6 billion (**)
Closed Pension Funds
Opened Pension Funds
Insurance and Pension Government Key Players
Ministry of Health
CONSUConselho de Saúde SuplementarPrivate Health Insurance Council
ANSAgência Nacional de Saúde Suplementar
Private Health Insurance Agency
Health Insurance Companiesand
Health Private Plans Operators
Private Health Insurance Advisory Board
Ministry of Finance
CNSPConselho Nacional de Seguros Privados
National Private Insurance Council
SUSEPSuperintendência de Seguros Privados
Private Insurance Superintendence
Insurance and Reinsurance CompaniesPrivate Pension OperatorsCapitalization Companies
CMNConselho Monetário Nacional
National Monetary Council(Investment Prudential Rules)
Ministry of SocialSecurity
CGPCConselho de Gestão da Previdência Complementar
Complementary Pension Management Council
SPCSecretaria de Previdência Complementar
Secretary of Private Pension Funds
Pension Funds
CNSEG
Confederação Nacional das Empresas de Seguros Gerais,Previdência Privada e Vida, Saúde Suplementar e Capitalização
National Confederation of General Insurance Companies, PrivatePensions and Life, Private Health Insurance and Capitalization
FENAPREVIFederação Nacional de
Previdência Complementare Vida
Life InsurancePrivate Pension Plans
No Life Insurance Health InsurancePrivate Health Plans
Capitalization
FENASAÚDEFederação Nacional de
Saúde Suplementar
FENACAPFederação Nacional de
Capitalização
FENSEGFederação Nacional de
Seguros Gerais
Insurance Institutional and Representative ModelWorking since 2007
Legal Prudential Requirements
Many technical provision must be created All financial and actuarial data are sent to SUSEP monthly Independent actuarial and financial audit (annually) Strong rules about asset allocation to invest those assets that
guarantees de technical provisions and de “free assets” Slide 14
To invest in assets that the insurance company or its controller or subsidiary is forbidden
Total transparency about the clearing process. SUSEP has access to the insurance companies every day
Rules to regulate the “No operational Liability” Free rollover right to all pension participant Strong internal control and compliance rules, included KYC Reinsurance operations Solvency rules (base capital, additional capital based on risks,
adjusted net assts etc…)
Know Your Client Rules
Circular SUSEP 380/2008 requires strong procedures to create and maintain an anti-laundering and counter-terrorism financing structure
The Internal Control team has to follow all financial transactions and to notice the governmental agent (COAF) the suspected operations
The Politically Exposed Person have to be identified The personal data information of all customers have to be keep under
control