Brazil has a developed seguro garantia market and significant demand for security in tax, civil, labour and administrative proceedings. For an international insurer, however, interest in the risk is not authority to issue the policy. The local policy, issuing insurer, reinsurance route and court or authority requirements must be aligned before capacity is treated as available.
Local issuance comes first
Seguro garantia is supervised by Brazil's Superintendência de Seguros Privados (SUSEP). The policy presented to the beneficiary must be issued by an insurer authorised for the relevant business in Brazil and comply with current Brazilian requirements, including the rules governing seguro garantia and registration of insurance operations.
Titanium Insurance SPC does not hold itself out as directly authorised to issue insurance in Brazil. Where a risk is within appetite, any participation would need to be arranged through an appropriately regulated local insurer and a separately approved, legally compliant insurance or reinsurance structure.
The legal proceeding defines the exposure
A judicial or tax guarantee cannot be underwritten from the policy schedule alone. The underwriter needs the claim or assessment, procedural history, advice from qualified Brazilian counsel, the court or authority, the required amount and indexation, and the conditions for replacement or release.
Duration can be uncertain. Appeals, procedural delays and indexation may increase exposure beyond the original amount. The applicant's schedule of all material disputes is therefore relevant, not just the single proceeding submitted for cover.
- Type of proceeding and competent court or authority
- Case number, current stage and next procedural deadlines
- Principal, interest, penalties and indexation method
- Legal analysis of merits and likely duration
- Required policy wording and acceptance criteria
- Existing guarantees, deposits and aggregate disputed liabilities
Reinsurance does not replace local compliance
International capacity may support a Brazilian insurer through reinsurance, but the local carrier remains responsible for its policy and must satisfy Brazilian rules on cession, counterparties, registration and documentation. The overseas reinsurer must be legally eligible for the cession and acceptable to the cedant; the issuing insurer may also require an appropriate net retention. Commercial terms between the parties do not override the policyholder's or beneficiary's rights under the local contract.
The participants also need clarity on claims control, collateral, premium flow, currency, tax, recoveries and access to information. The beneficiary and any relevant lender or intermediary must accept the issuer and security structure. A structure is only credible when it works both on inception and following a contested demand.
Regulation continues to develop
SUSEP's Circular 662/2022 and its technical manual are central reference points for seguro garantia. Reinsurance and overseas risk-transfer arrangements also require analysis under the applicable framework, including CNSP Resolution 451/2022 and SUSEP Circular 683/2022. Brazil's Insurance Contract Law, Law 15,040/2024, has changed the wider legal framework, and SUSEP's 2026 regulatory programme includes work to align guarantee-insurance and reinsurance rules with that legislation.
For that reason, market notes should not be treated as a substitute for current Brazilian legal and regulatory advice. Final wording and placement structure should be confirmed for each transaction at the time of issue.
Primary references
External regulatory materials should be checked for updates before relying on them.