Brazil insurance sector faces aging population and regulatory shifts

At the 12th National Life Insurance and Private Pension Forum, industry leaders highlighted the challenges posed by Brazil’s aging population. Edson Franco, president of Fenaprevi, warned that the current INSS system is unsustainable in the medium to long term, projecting that in less than 30 years, there will be only one contributor for every retiree. He noted that while many Brazilians hope to retire at 60, few are prepared for the financial reality, and many rely on the INSS without knowing their future benefit amounts.

Discussions at the forum also focused on expanding insurance access. Experts suggested that 'Universal Life' insurance could democratize protection by offering flexibility to adapt to changes in income and employment. Currently, while 96% of the population is in the financial system, only 18% holds life insurance.

In regulatory news, Susep has authorized Novo Seguros to transition from the regulatory sandbox to a full S4 insurance company. This allows the firm to operate nationally in both damage and personal insurance segments, marking a significant expansion of its business model.