Event brings together leaders to discuss Guarantee Insurance in Brazil

Meeting promotes dialogue on the strategic role of Guarantee Insurance in boosting companies’ financial capacity

The event “Guarantee Insurance | Liquidity for your business” was held on Wednesday (May 14) in São Paulo (SP). Conceived by Horiens, in partnership with NürnbergMesse, the meeting brought together about 100 guests to discuss challenges and opportunities in the Guarantee Insurance market.

The program included three panels that addressed legal and contractual aspects, the impact of Guarantee Insurance on business liquidity, as well as trends and innovations, such as the introduction of artificial intelligence in some processes. “Although Guarantee Insurance has gained prominence in recent years, especially in the context of judicial guarantees, our goal was to broaden this perspective. The proposal was to explore the strategic scope of the instrument in commercial contracts, analyzing how this tool can be used to leverage the financial capacity of companies, replace other types of guarantees, and generate more efficiency in contractual risk management,” said Matheus Chammas, Director of Risk and Insurance at Horiens.

As he explained, it is an effective solution for companies seeking to optimize their liquidity while ensuring the continuity and security of their operations. “The numbers prove this trend. In 2023, according to SUSEP (Superintendence of Private Insurance), the market moved R$ 4.3 billion in premiums. Last year, that number jumped to R$ 5.1 billion, a record for the segment.”

Carlos Quick, vice president of Pottencial Insurance, pointed out that the capacity of Guarantee Insurance currently used in contracts and legal proceedings in Brazil is estimated at between R$ 1.3 trillion and R$ 1.5 trillion, demonstrating the relevance of the product to the business environment. “More than a contractual requirement, the product has established itself as an instrument that enables operations, especially in infrastructure projects, public concessions, and large corporate contracts.”

Novonor is an example of a company that uses Guantee Insurance in its business. According to CFO Lucas Cive, a participant in one of the panels, the Group has a long history of using the instrument, which has proven to be relevant for the viability of its projects, especially because it operates in diverse and highly complex segments. “We know the product well and use it on several fronts, from petrochemicals, which uses legal and tax insurance, to the construction business, with performance and advance insurance, for example. It is very intrinsic to the Novonor Group and is fundamental to leveraging business. The symbiosis between insurer, broker, and client is very positive. The level of detail and understanding of the projects allows us to curb risk in the right place and price it in the best way.”

In Anna Paixão vision, vice president of the Credit and Guarantee Commission of FenSeg , the relationship between insurer, broker, and client becomes fundamental in this context. “Guarantee Insurance is not a standard contract. It is a solution that can—and should—be customized according to the specific needs of each operation. In this sense, the pre-contractual moment is decisive for the success of the policy. It is at this stage that the fundamental technical and legal alignments are built to ensure that the coverage works as expected throughout the term of the contract,” she said.

According to her, it is not enough to issue the policy and “forget about it in a drawer.” “Any addendum or contractual change must be communicated to the insurer. This active management not only prevents risks, but also allows the policy to function as an important cash flow generation tool, enabling operations and freeing up capital for other strategic purposes.”

This opinion is shared by Cristina Weiss, currently Insurance Manager at Votorantim and a member of ABGR . “In my experience as a risk manager in large companies, Guarantee Insurance has proven to be an interesting tool, especially when there is constant dialogue and alignment between all parties involved. The partnership between the insurance area, broker, and insurer, understanding the particularities of the operation and working closely together from the structuring phase, makes all the difference to the success of the business.”

Gustavo Correa, manager of Guarantees, Credit Insurance, and Political Risks at Horiens, pointed out that Guarantee Insurance is an instrument that provides contractual and financial security, especially for those who deal with suppliers and subcontractors. “Its purpose is to guarantee the delivery of the contract scope, in the stipulated quality and within the stipulated time frame, in addition to providing financial protection in the event of breach of contract. It also brings indirect benefits to risk managers and contractors, such as the use of the insurer as an additional filter in the selection of suppliers, who have to undergo a screening process for delivery capacity and creditworthiness,” he explained.

Another point highlighted at the event was the changes in regulatory frameworks that have taken place over the last few years, which have contributed to the creation of a more robust and favorable framework for the development of this market in Brazil. For Pedro Guilherme Gonçalves de Souza, partner at SABZ Advogados, there is a real “blue ocean” to be explored in this segment, especially when it comes to the development of non-judicial solutions. “The market has developed significantly in recent years with advances in regulatory frameworks.”

According to Fabiano Suzarte, director of Insurance Guarantees at Fator Seguradora, in this scenario, the proximity between the insurer, the guarantee taker, and the broker becomes even more essential. “The responsibility is shared. It is necessary to jointly build models that work for everyone involved, especially in more complex situations, such as delays in construction projects, for example.” In his view, this coordinated action allows not only for better structuring of the policy, but also for a more efficient response to unforeseen events and contractual changes.

“Guarantee insurance has existed in Brazil for a long time, but in 2015 there was a very positive change. That was when the government began to accept it in addition to bank guarantees and bonds in legal proceedings. This has transformed the market over the last 10 years,” added Caio Lhano, manager of Guarantees, Credit Insurance, and Political Risks at Horiens.

In the opinion of Emerson Resck Bueno, Commercial Director of Megabrokers and Bids at Sompo, the event was a valuable opportunity to educate company managers about the various possibilities that surety insurance offers as a risk management tool. “This market has become increasingly relevant, especially in a challenging economic scenario, where security and confidence in operations are fundamental,” added Bueno.

“The importance of Horiens’ role with clients in supporting and applying best practices in the relationship between policyholder and insurer, for the effective construction of a partnership and efficient solutions, was evident,” added Chammas.

The event was sponsored by Fator Seguradora, Pottencial Insurance, and Sompo, with support from ABGR and the Brazilian Institute of Finance Executives of São Paulo and Rio de Janeiro (IBEF-SP and IBEF-Rio).

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