Insurance - updated on Mar 30 at 12:40 pm
Release of Exclusions by Insurers
In order to assist beneficiaries of life insurance policies during these exceptional times, some life insurance companies decided to waive their policies’ exclusion for death by pandemics and/or epidemics.
This behavior may, however, set a precedent regarding a possible waive of exclusions in other lines of insurance, such as damage insurance for loss of business as a result of business interruption caused by the pandemic, which obviously, increased and will continue to increase significantly in the next few months.
In addition, given that insurance contracts are based on actuarial calculations, and price is based on the risks underwritten, the waiver of exclusions by insurers may compromise the mutualistic basis that guides any and all lines of insurance, impacting the good management of insurers.
SUSEP may impose fines varying between R$ 10.000,00 and R$ 1.000.000,00 on insurers for waiving the exclusions. They have not issued their position on the matter.