HYBRID SOCIAL INSURANCE AS A COMPLEMENT TO THE BPC: PREVENTIVE PROTECTION AGAINST INFORMALITY-RELATED RISKS AND FAMILY VULNERABILITY

Abstract

This article examines the feasibility of a Hybrid Social Insurance scheme as a complementary mechanism to Brazil’s Benefício de Prestação Continuada (BPC), aimed at providing preventive protection for low-income families facing premature death or work disability of the household provider, particularly in contexts of high informality. The analysis begins from the premise that the Brazilian social protection system remains predominantly reactive and ex post, activated only after social damage is consolidated, thereby reinforcing persistent poverty cycles and long-term welfare dependency. Drawing on literature review, legal-institutional analysis, and a synthesis of international experiences with micro-insurance and co-financed social schemes, the study proposes a conceptual design grounded on three pillars: (i) public–private co-financing, (ii) simple parametric triggers, and (iii) institutional integration with SUAS and BPC, avoiding benefit overlap. The paper argues that such a model can reduce intergenerational vulnerability, mitigate the socioeconomic effects of incapacity events, and simultaneously lower future fiscal pressure on social assistance by acting preventively. It concludes by outlining an applied research agenda, including actuarial modeling, distributive assessment, and governance evaluation, to support future empirical development in comparative settings and within Brazil.