Brazil’s New Insurance Law Cast as Economic Reform Ahead of Rollout

Overview

• Finance Minister Fernando Haddad told an insurance law congress that the statute will make a great contribution to national development.
• After more than two decades of debate, Congress approved the measure unanimously and President Lula sanctioned it without veto, with entry into force expected later this year.
• The law sets clearer contract rules, imposes a maximum 30-day deadline for indemnity payments, and requires simple, accessible language in documents.
• Haddad framed sector growth as relying more on confidence, information and modern regulation, and said the new framework enables products such as on-demand and parametric insurance.
• He cited R$400 billion in sector activity in 2024 and noted that insurance penetration in GDP remains modest and needs incentives.