Brazil Surety Insurance Hits R$6.29 bn in 2025

What Is Surety Insurance and Why Are Brazilian Companies Rushing to Use It?

Surety insurance (seguro garantia) allows a company to guarantee contractual or judicial obligations without freezing cash in deposits or eating into credit lines. Instead of parking money in an escrow account, the business pays a premium to an insurer, which then backs the obligation — keeping working capital free for operations and growth.

How Fast Is the Market Growing?

The numbers are striking. In 2025, the credit-and-guarantee segment recorded the highest growth of any line in the Brazilian insurance market, up 19.5%, according to IRB+Inteligência data. Surety insurance alone collected R$6.29 billion in premiums — a 23.88% jump versus 2024, per Susep panel figures. Public-sector guarantees led the way, accounting for R$5.45 billion of that total.

What Role Did the New Procurement Law Play?

A significant share of the expansion is tied to the consolidation of Brazil's new Public Procurement and Contracts Law (Lei nº 14.133/2021). The legislation repositioned contractual guarantees as a risk-management tool and strengthened surety insurance in public contracting. For engineering works and services, the law allows a "step-in" clause under which the insurer can take over execution if the contractor defaults.

Why Do CFOs Prefer It Over Bank Guarantees?

Guilherme Silveira, CEO of Genebra Corretora de Seguros, puts liquidity at the centre of the pitch. By replacing a cash deposit or bank guarantee bond, a company keeps its funds available to reinvest in the business, expand operations, or strengthen working capital. Critically, surety insurance does not consume bank credit lines, leaving those facilities open for productive activities. The contracting process is also typically simpler and less bureaucratic than traditional guarantees.

Is This Only for Large Corporations?

No. Sound risk management has spread beyond large companies to organisations of all sizes. Silveira notes that surety insurance provides a structured, regulated and transparent solution with a built-in governance component: issuing a policy requires technical underwriting analysis, which itself enforces discipline on the insured.