Guarantee insurance demand rises amid high Brazilian interest rates

The demand for guarantee insurance (Seguro Garantia) in Brazil is rising as companies seek alternatives to traditional credit. With the Selic rate at 14.25% per year, high capital costs and reduced risk appetite from traditional banks are driving medium-sized enterprises toward fintechs and other financing solutions to preserve cash while bidding for major contracts.

CNseg projects a 12.1% growth in the guarantee insurance sector for 2026. This expansion is fueled by judicial guarantees, the new legal framework for insurance contracts, and the Novo PAC investment package, which anticipates approximately R$ 1.7 trillion in total investments.

At a recent industry summit at B3, Sompo highlighted the critical role of guarantee insurance in enabling R$ 757 billion in concessions and Public-Private Partnership (PPP) projects. Experts discussed the evolution of infrastructure contracts toward more flexible models capable of addressing complex climate, technological, and economic risks.