Even before Brazil’s insurance regulator, the Superintendence of Private Insurance (SUSEP), ordered the liquidation of Goiás-based Infinite last week, companies operating in the surety insurance market had already begun talks to create a self-regulatory system in what would be an unprecedented initiative in the country. Although Infinite held only around 0.5% market share, the case generated concern because of its potential impact on the segment where the company concentrated its operations.
Surety insurance is used to guarantee compliance with obligations assumed in contracts. Insurers guarantee that a company will fulfill financial, contractual, or judicial commitments and, if it fails to do so, compensate the contracting…