Brazil rolls out phase 2 of Open Insurance

This phase allows for the sharing of personal data such as customer registration and movement related to products if the customers provide their consent. The General Coordinator of Projects at the Superintendence of Private Insurance (Susep) explains that this phase will begin with the sharing of registration data and home insurance data. This opening of customer data will reportedly enable the development of more assertive and customised products that cater to the customers' needs and risks. Companies will supposedly be able to develop new tools and offer more solutions to their customers.

The phases of Open Insurance

The implementation of Open Insurance consists of three main phases:

• Phase I, which finished earlier, allowed the sharing of public data on service channels, insurance products, open private pension plans, and capitalisation available for sale. 

• Phase II, which starts on 1 March, focuses on the sharing of personal data. 

• The final phase, Phase III, is expected to begin in the coming months of 2023 and will provide for the initiation of services through the ecosystem.

According to Susep, Open Insurance will be integrated with Open Banking, resulting in Open Finance. This integration will enable the creation of more suitable products and a much more assertive and easier transaction for the end-users. Joint Resolution No. 5/2022, approved by the National Council of Private Insurance (CNSP) and the National Monetary Council (CMN), provides for interoperability in Open Finance. The interoperability will allow the standardised sharing of data, upon customer consent, in a secure, agile, and accurate manner, between banks, payment institutions, credit cooperatives, insurance companies, open private pension entities, capitalisation companies, and other institutions authorised to run by the Brazilian central bank and Susep.

This interoperability will seek to encourage the development of new business models that help families and companies in their financial decision-making. It will also reinforce consumer control over their financial data, enabling consumers to share their data more widely in the national financial system, with security, agility, and precision.

The press release concludes by saying that the implementation of Open Insurance's second phase in Brazil is expected to provide companies with valuable customer data to develop new and customised products. The integration of Open Insurance with Open Banking to create Open Finance will seek to improve the financial system's interoperability, improve customer experiences and control, and encourage the development of new business models.