Brazil has taken a significant step toward expanding its insurance sector with the introduction of Complementary Law No. 213/2025. The new legislation grants insurance cooperatives greater operational freedom, setting the stage for a more dynamic and inclusive market.

Empowering cooperatives

Previously, insurance cooperatives in Brazil were restricted to specific sectors, such as agriculture, health, and work-related accident insurance. Under the new law, these restrictions have been lifted, allowing cooperatives to offer a wider range of insurance products across various industries—except in cases where specific regulations prohibit them.

Boosting competition and consumer choice

By allowing new players to enter the market, the legislation is expected to foster competition in the insurance industry. As cooperatives expand their services, consumers may gain access to more affordable and diverse insurance options. The growth of these community-driven models could also lead to more personalized and locally adapted solutions that better serve policyholders’ needs.

Additionally, the law enhances the supervisory powers of the Superintendence of Private Insurance (SUSEP), ensuring that cooperative insurers adhere to best practices. This increased oversight is expected to boost consumer confidence in cooperative insurance providers.

Implications for the insurance market

The enactment of Complementary Law No. 213/2025, which will come into effect from the end of 2025, is expected to have far-reaching effects on Brazil’s insurance sector:

• Increased competition: By allowing new entities, such as insurance cooperatives, to enter the market, the law is anticipated to foster competition. This could lead to more diverse insurance products and potentially more competitive pricing for consumers.
• Enhanced regulatory oversight: The legislation strengthens the supervisory powers of the Superintendence of Private Insurance (SUSEP), the regulatory body overseeing the insurance market. This enhancement aims to ensure that all market participants adhere to established standards, thereby promoting stability and consumer trust.
• Consumer protection: With a broader array of insurance providers and products, consumers are expected to benefit from more choices tailored to their specific needs.

A new era for cooperative insurance in Brazil

Industry experts see the law as a milestone for Brazil’s cooperative insurance sector. By providing a legal foundation for these entities to grow, the government is signalling strong support for alternative, community-focused insurance models that prioritise policyholder benefits over shareholder profits.

As the law takes effect, insurance cooperatives will be well-positioned to expand their reach, strengthen their financial stability, and offer competitive alternatives in a market traditionally dominated by large commercial insurers. This shift could pave the way for a more inclusive and consumer-friendly insurance ecosystem in Brazil.

Catherine Hock, Senior Vice-President, International Relations, ICMIF said: “This landmark legislation is a tremendous step forward for cooperative insurers in Brazil. By providing a clear legal framework and expanding opportunities for this member-owned model, the law strengthens financial inclusion and enhances consumer choice. We welcome this progress and look forward to seeing the positive impact it will have on communities across the country.

“ICMIF stands alongside the OCB (Organização das Cooperativas Brasileiras) in their journey of implementing the new provisions. The task ahead is challenging but we have full confidence in the OCB’s ability to accomplish this.”