Find all our news articles and analysis of Brazil’s insurance-linked securities (ILS) framework, the Letra de Risco de Seguro (or Insurance Risk Letters) (LRS) below.
Brazil developed its own brand of regulatory rules to support ILS style issuance and special purpose reinsurance vehicles, which came into force from early 2021 bringing domestic ILS capabilities to its marketplace.
The ILS regulations in Brazil allow for structures known as Sociedades Seguradoras de Propósito Específico (SSPE) to issue Letra de Risco de Seguro (Insurance Risk Letters) (LRS), as a type of insurance-linked securitization note that can be sold to capital market investors, to collateralize insurance or reinsurance arrangements.
The South American nation of Brazil is the latest to target the creation of a framework for legislation and a regulatory regime to allow for the issuance of insurance-linked securities (ILS) in the country, as it looks to ILS as a possible avenue to help its growing re/insurance industry further expand.
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