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FDI: Treatment and operations, nes
On December 20, 2017, the National Council of Private Insurance issued Resolution 353 eliminating the limits on risk cession between reinsurers authorised to operate within Brazil and their affiliated companies registered elsewhere, as well as, the market reserve in favour of the domestic reinsurers.
With regard to the limits of risk that could be allocated to an intra-group reinsurer, the prior Resolution set the limit at 30% for 2017 and planned a progressive increase to a cap of 75% by 2020 (please, see related state acts).
Concerning the market reserve, previously to this resolution, insurers were obliged to place a minimum percentage of each risk with local reinsurers set at 30% for 2017 and progressively decreasing to 15% by 2020 (please, see related state acts).
This resolution entered into force on December 22, 2017.
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