Law No. 15.040 of December 9, 2024 was sanctioned on December 9, 2024, establishing the new Legal Framework for Insurance in Brazil. With an expected effectiveness within one year from its sanctioning, this law marks a significant step toward modernizing and balancing the relationship between insurers and insureds, as well as promoting greater transparency and fairness within the industry.

One of the most notable changes is the revocation of outdated regulations that no longer align with today’s market needs. Now, insurers will be required to clearly outline the risks and events excluded from policies. This step is designed to eliminate ambiguities, giving insureds greater legal certainty and making it easier for them to understand exactly what is and is not covered.

Additionally, the ban on insurers unilaterally canceling contracts strengthens consumer protection, fostering trust and stability in contractual relationships.

Another key point is the requirement for insurers to notify their reinsurers about any legal actions involving insurance contracts. This change promotes a more collaborative and efficient system, with greater sharing of responsibilities and information. Insurers must also respond regarding claim coverage within 30 days, with the possibility of extending this deadline only under exceptional circumstances. In more complex cases, the maximum deadline will be 120 days, ensuring faster and more effective responses for policyholders.

The new law also strengthens the principle of transparency. Insurers are now required to provide to the insured documents generated during the claim’s adjustment process, such as assessment reports, except when they involve confidential matters. This measure provides insureds with greater control and clarity over the progress of their claims, promoting fairer and more transparent relationships.

On the other hand, the legislation also strengthens the responsibilities of the insureds, such as the obligation to promptly notify the occurrence of claims and follow the insurers’ guidelines to mitigate damage. This collaboration is essential for effective risk management, benefiting both parties.

The new Legal Framework for Insurance brings a significant advancement to the industry, establishing clearer, safer, and more balanced contractual relationships. As insurers adapt to the new rules, it is crucial for consumers and industry professionals to stay informed about the changes and prepare for their implementation.

With these changes, a smooth transition is expected, along with the strengthening of the insurance market in Brazil, creating a more trustworthy, transparent, and fair environment for all participants.

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For more information on the above or other matters, please contact Maristela SA Rossetti (mar@rraa.com.br) or Gilberto Rossetti (gmr@rraa.com.br). This article is based on publicly available information and given for informational purposes only. It is not intended as legal advice foreign subsidiary as a comprehensive analysis of the matters referred to herein.