From the end of 2015 onwards, new pro – market administrations were implemented in the Argentine insurance market. As per the previous administration, there were regulations setting limits on investments in hard currencies and for productive projects. These restrictions were removed by the latest administration. Relaxation of stringent regulations on reinsurance with foreign carriers was also implemented, while simultaneously increasing the minimum capital for insurers to promote more reliable and solvent entities. A recent trend has also been observed in the Supreme Court of Justice to protect the interests of insurers by affirming the validity and enforce ability of the insurance contracts and policy limits, exclusions and deductibles in spite of consumer protection regulation.
The report Governance, Risk and Compliance- the Argentine Insurance Industry provides an overview of the insurance regulatory framework in Argentina. It gives the latest key changes and changes expected in the country’s insurance regulatory framework. The report provides key regulations and market practices related to different types of insurance product in the country and rules and regulations pertaining to key classes of compulsory insurance and the scope of non-admitted insurance in Argentina. The key parameters including licensing requirements permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements and investment regulations and details of the tax and legal systems in the country are detailed in the report.
The primary legislation in Argentina includes the Insurance Law (17,418); the Insurance Companies Law (20,091); the General Regulation of Insurance Activity, which sets out the main regulations for the insurance and reinsurance industry; and the Law on Insurance Brokers (22,400). The SSN is the primary government regulatory body for insurance corporations. However they are subject to the jurisdiction of other government authorities like Public Registry of Commerce (which maintains a register of all commercial entities), Federal Public Income (which is responsible for federal tax matters and provincial tax offices), Consumer protection authorities, at national, provincial or municipal levels, Super intendence of Labour Risks (which supervises and regulates labour risks insurers) and Financial Information Unit (which is responsible for preventing money laundering and terrorist financing).
The future trends can expect to see more regulatory changes in developed markets and Argentina’s neighbours, with accord to the Association of Insurance Supervisors of Latin America and the International Association of Insurance Supervisors. Financial markets and permissible investments are likely to see various reforms to enable long term investments. Due to modernisation and digitalisation, insurance market is witnessing online registration and electronic selling of insurance. All of this will be accompanied with stricter regulation and supervision of insurers.
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Ankur Gupta, Head Marketing & Communications