Brazil’s insurance regulator aims to force its flock to look beyond the 'Big 4' accountancy firms when hiring for actuarial audits.

The Superintendencia de Seguros Privados, Brazil’s insurance regulator, is reportedly pre-empting the European Union’s nascent plans to look beyond the exclusive use of ‘Big 4’ accountancy firms to do various work, in this case actuarial audits. The new rules are timed to bite on 1 Jan 2015.

The rules are to be found in resolution 312, which will force insurance firms to set up audit committees if they have more than 500 million reals ($225.7 million) in equity or 700 million reals ($316 million) in technical provisions (i.e. reserves, which might in this case cover unearned premium, unexpired risks, claims outstanding or equalisation) if they have not done so already.

According to reports, every insurance firm must change its independent actuary and independent auditor every 5 years, with no reappointments until after a 3-year gap.

SUSEP was created by the Decreto-ley 73/66 and is directly linked to the finance ministry. It is the executive body of the policies designed by the CNSP and is also the insurance commissioner, responsible for the supervision and control of insurance, open private pension funds and capital markets of Brazil.