Transformation in the Insurance Scenario in Brazil and PLC 29/2017

[bitheerani42135]

The House Bill (PLC) No. 29/2017 , dedicated to the specific regulation of insurance contracts, is currently being deliberated in the legislative houses, attracting special attention in the sector due to its potential impacts.


On November 21, 2023, a new version of the bill, technically known as a 'substitutive amendment', was presented by the brazil mobile database in the Committee on Constitution, Justice and Citizenship, Senator Jader Barbalho. After analysis by the CCJ, the PLC will go to the Committee on Economic Affairs and, subsequently, to the Plenary of the legislative house. If approved with the amendments incorporated, the text will be sent back to the Chamber of Deputies for further deliberation on the modifications and, subsequently, sent for presidential sanction.


It is important to highlight that the scope of the PLC is focused on the regulation of insurance contracts, without directly influencing the structure of the National Private Insurance System , whose regulation is the responsibility of Decree-Law No. 73/1966, which has the status of Complementary Law. However, the final provisions of the PLC propose the repeal of provisions of this Decree-Law, on the grounds that the articles in question (from 9 to 14) do not address matters reserved for complementary law, according to art. 192 of the Constitution, thus allowing their repeal by means of ordinary law.


The articles targeted for revocation are part of Chapter III – “Special Provisions Applicable to the System”, covering topics related to the insurance contract, from the signing of proposals to the forms of termination. We believe that these changes do not modify the structure of the National Private Insurance System, although there is room for debate on the legality of this change of Complementary Law through an Ordinary Law.


Bill No. 29/2017 introduces substantial changes to the Brazilian Civil Code regarding insurance contracts, seeking a clearer and more detailed structure. The proposal redefines the insurance contract, emphasizing the insurer's responsibility to cover predetermined risks through the payment of the premium by the insured and reiterates that only legally authorized entities can operate in the insurance market.

Two aspects of the PLC deserve special attention for this analysis:
The possibility of proposals being formalized by the insured , directly or through his/her insurance broker; or by the insurer, through its representatives/agents. The PLC categorizes brokers, representatives and agents of insurers as 'parties in the insurance contract', a new terminology in relation to current laws; and

The use of digital means is permitted for everything from the formalization of the proposal to the regulation of claims, as long as “suitable means” are used to guarantee the integrity, authenticity and security of electronic transactions and communications. This innovation ensures the insertion of the insurance market in the digital economy and enhances activities within the scope of Open Insurance, respecting the need for cybersecurity and data protection, obligations already required under current laws and regulations.


Overall, the amendment to PLC No. 29/2017 demonstrates a notable legislative effort to update and specify the insurance contract regime in Brazil. With the amendment and its subsequent processing by the Senate, the bill presents itself as a detailed initiative that aims to bring greater clarity and legal certainty to the insurance sector , aligning it with international practices and standards.