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News

Open Insurance records 16.5 mln transactions in the last year

Wednesday 23 October 2024 14:43 CET | News

Open Insurance system in Brazil has processed around 16.5 million transactions between September 2023 and September 2024, based on data from Susep.

 

This figure includes 10.5 million open data requests (Phase 1) and 6 million transaction-sharing requests (Phase 2), reflecting the progress of the system's implementation, which is expected to conclude in November 2024 with Phase 3. 


Open Insurance, also known as the Open Insurance System (OPIN), facilitates and standardises the sharing of consumer data with insurance, open supplementary pension, and capitalisation companies. This is done through the integration of systems, enabling the creation of new products and services, and linking with the Open Finance system. 

On the consumer side, approximately 3,000 individuals have given their consent to share their data through Open Insurance. As for the industry, 74 entities, including insurance firms, supplementary pension entities, and capitalisation companies, are already registered. Over 1,200 APIs have also been made available, organised into 72 groups, to streamline data sharing and system integration among participating companies. 

 

Open Insurance system in Brazil has processed around 16.5 million transactions between September 2023 and September 2024, based on data from Susep.

 

As for SPOCs (Customer Order Processing Companies), only two companies have been authorised so far. There are no new accreditation requests under analysis, although the number may increase as the project expands. According to Susep, SPOCs are entities that, once accredited, can act by providing data aggregation services to consumers, information and control panels or, even with the client's consent, represent them, providing services related to the initiation of financial transactions. 

Open Insurance, by integrating consumer data with prior consent, aims to increase competition in the insurance sector, allowing companies to develop more personalised and efficient products, with innovation and technology being the main drivers of this process. 

Expectations for the insurance sector in Brazil 

While the sector in the country is still considered underdeveloped, it has significant growth potential. The industry aims to represent 10% of Brazil's GDP by 2030, with the potential to generate up to R$1.14 trillion during that period, as estimated by the National Confederation of Insurers (CNSeg). Open Insurance is expected to play a key role in advancing operations and helping insurers adapt to this evolving landscape, the study suggests.  

The implementation of Open Insurance is currently in its third and final phase. This stage focuses on sharing services to facilitate the management of insurance plans across all segments, including Individual Group insurance, microinsurance, open supplementary pensions, and capitalization. 

Although consumers are uncomfortable with sharing their banking and insurance product details, financial education can help people overcome this barrier. Both Open Finance and Open Insurance can help increase access to products that are more suitable for consumers. 

Source: Link


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Keywords: insurance, research, Open Finance, financial services
Categories: Banking & Fintech
Companies: Susep
Countries: Brazil
This article is part of category

Banking & Fintech

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Susep

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