Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 193

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 4
Chunk 193
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 the supplemental health care market;
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·   qualification of the supplemental health care, creating policies, guidelines and actions that seek, among
             other things, the qualification of the sector, in relation to the regulated market; and         
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·   institutional articulation, creating policies, general guidelines and actions to optimize the internal
          and external institutional relations enabling the effectiveness of the regulatory process.      
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4.B.70.03-02 Insurance regulation
 The Brazilian insurance business is regulated by Decree-Law No. 73/66, as amended, which created two regulatory agencies, the CNSP and SUSEP. SUSEP is responsible for implementing and overseeing CNSP’s policies and ensuring compliance with such policies by insurance companies, capitalization companies, public private pension entities, insurance and reinsurance brokers, and policyholders. Insurance companies require government approval, as well as specific approval from SUSEP to offer each of their products. Insurance companies may underwrite policies both directly to consumers and through authorized brokers (Article 13 of Law No. 4,594/64).
 Insurance companies must set aside reserves in accordance with CNSP criteria. Investments covering these reserves, rules for which were consolidated by CNSP Resolution No. 321/15, revoked by CNSP Resolution No. 432/21 and later amended by CNSP Resolution No. 448/22 and CNSP Resolution No. 453/22, must be diversified and meet certain liquidity, solvency and security criteria. The insurance companies are major investors in the Brazilian financial markets and are subject to CMN rules and conditions for their investments and coverage of technical reserves.
 Insurance companies may not, among other activities:
 
·   act as financial institutions by lending or providing guarantees;
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·   trade in securities (subject to exceptions); or
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·   invest outside of Brazil without specific permission from the authorities.
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 Insurance companies must operate within certain retention limits approved by SUSEP pursuant to CNSP rules. These rules reflect the economic and financial situation of insurance companies and the conditions of their portfolios. Insurance companies must also meet certain capital requirements, as provided by SUSEP regulations.
 Regarding the assignment of the risk, under Complementary Law No. 126/07, the ceding party (local insurance or reinsurance companies) must offer local reinsurers preference when contracting reinsurance or retrocession in the percentage of 40% of risks ceded.
 The Complementary Law also places more severe restrictions on c