The Brazilian government issued proposals yesterday for opening up the domestic reinsurance market to private companies. A public consultation period ends on November 15.

The reinsurance market is currently monopolised by IRB-Brasil Resseguros SA, a government-owned company. The government is changing the rules to allow both local and foreign companies to enter this market by next year.

"In order for us to come here, we need regulation to change in a way that will allow us to operate as we do in other places around the world," said chairman Peter Levene to reporters at a press conference in Sao Paulo. "We would be very disappointed if that doesn't happen."

Levene plans to expand Lloyd's business in emerging markets including Russia, China and India, as the three-century-old operation competes with other insurance centres such as Bermuda, which offers lighter regulation and lower taxes.

In a letter published on October 16 in the Financial Times he criticised the US for requiring non-US reinsurers to post 100 percent collateral in respect of reinsurance provided in the US, whereas US-based reinsurers are subject to no such requirement.