WASHINGTON, April 26, 2011 /PRNewswire-USNewswire/ -- The American Council of Life Insurers (ACLI) joined in an unprecedented coalition of 18 insurance groups from Europe, Asia and the Americas in urging the Brazilian government to reconsider reinsurance regulations that could severely reduce the availability of insurance in Brazil, including coverage for the Olympics and World Cup.
The regulations would dramatically restrict the ability of private insurers and reinsurers—both Brazilian and foreign—to do business in Brazil. This would:
- Restrict insurance and reinsurance capacity,
- Jeopardize global investment in Brazilian insurance and reinsurance operations,
- Expose Brazilian policyholders to greater risk,
- Harm local job creation and tax collection,
- Drive up cost for policyholders, and
- Call into question Brazil's ability to provide adequate insurance and reinsurance for the Olympic Games and World Cup.
The insurance groups look forward to working with Brazilian authorities to understand their concerns, examine the unintended consequences of these regulations and determine a way forward that allows for a healthy and robust insurance market in Brazil.
"We hope to work with the Brazilian government to expand the insurance and reinsurance markets, maintain adequate capacity and provide people and businesses in Brazil with a wide array of innovative insurance products. Leaders in Brazil had been working for many years to remove unnecessary restrictions and open the market to more competition. A more open and competitive market will benefit consumers and businesses alike," said Dirk Kempthorne, president and CEO of ACLI.
To see a copy of the letter to Brazilian authorities in English and Portuguese language, a statement from the Federation of European Risk Management Associations and a statement from CEA, the European insurance and reinsurance federation, click here.
The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with more than 300 legal reserve life insurer and fraternal benefit society member companies operating in the United States. ACLI members represent more than 90 percent of the assets and premiums of the life insurance and annuity industry. In addition to life insurance and annuities, ACLI member companies offer pensions, 401(k) and other retirement plans, long-term care and disability income insurance, and reinsurance. ACLI's public Web site can be accessed at www.acli.com.
American Council of Life Insurers 101 Constitution Ave, NW, Suite 700, Washington, DC 20001-2133
SOURCE American Council of Life Insurers