The new Brazilian Insurance Act, set to take effect in December 2025, will significantly strengthen insureds’ rights, making contracts more transparent and claims handling faster. Insurers will be required to provide clear and accessible policy wordings, justify claim denials in detail, and adhere to strict response deadlines, including for large risk losses. Failure to do so may result in penalties or claims being automatically accepted. The law also mandates that any ambiguity in policy terms be interpreted in favor of the insured. This shift will empower policyholders and might increase litigation in the short term as market practices adjust, while forcing insurers to overhaul internal processes, invest in staff training, and upgrade systems to ensure compliance and avoid regulatory sanctions.