Latin American Developments

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On July 31, 2009, the SEC filed a civil enforcement action against  NSP,  NSP’s CEO Douglas Faggioli, and NSP’s former CFO, Craig D. Huff, arising out of alleged bribes  that NSP made to Brazilian customs officials in violation of the Foreign Corrupt Practices Act. 

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Read More Nature’s Sunshine Products, Inc., (“NSP”) and Two of NSP’s Officers Settle FCPA Enforcement Action

Last month, the Uruguayan government made minimum automobile insurance coverage mandatory for all vehicles.  Nonetheless, insurers are not obligated to sell the mandatory coverage and some 40% of the nation’s automobiles do not have the obligatory minimum coverage. 

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Read More Uruguay: Market Watchful As Implications Of Mandatory Automobile Coverage Remain Unclear

Brazil’s insurance regulator, SUSEP, recently indicated that the timeline for microinsurance legislation has been further extended.  Almost to the day, yet another study was released, this time by the Brazilian economic analysis firm FGV, indicating a vast potential for microinsurance sales in the Brazilian market. 

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Read More Brazilian Market Shows Microinsurance Promise, But Regulation Lags Behind

The International Association of Insurance Supervisors (IAIS) has said that it is preparing guidance to the regulatory and supervisory community in relation to insurance securitisation which is expected to be finalised in 2011. 

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Read More International Association of Insurance Supervisors to Prepare Common Standards for Insurance Securities

The Panama Canal Authority (ACP) has reportedly indicated that it expects its total insurance coverage needs for the expansion of the Panama Canal to exceed $100 million.  The ACP has retained Willis Limited to broke the coverage and has already established that interested insurers must carry a minimum rating of A- (A.M. Best, S&P or Fitch) or A3 (Moody’s). 

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Read More Insurance Coverage Required for Expansion of Panama Canal Expected to Exceed $100 Million

Costa Rica – As reported previously in this space (see here), Costa Rica’s Instituto Nacional de Seguros’ international expansion plans were put on hold in May 2009 when the nation’s Comptroller General took the position that the INS was empowered only to partner with, not acquire or establish, foreign companies. …
Read More Latin American Insurance and Reinsurance Update: Costa Rican INS Revives International Expansion Plans; Double-Digit Market Growth in Ecuador and Peru; IRB Earnings Decline 55.7% in Brazil

One of Brazil’s largest insurers, Porto Seguro S.A. (“Porto Seguro”), and one of the country’s leading private banks, Itau Unibanco Holding S.A. (“Itau Unibanco”),  recently announced an agreement to merge their residential and auto-insurance operations.  The merged entity, which will retain the Porto Seguro name, will be controlled by a new holding company to be called Porto Seguro Itau Unibanco Participacoes (PSIUPAR). 

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Read More Brazil: Porto Seguro and Itau Unibanco Agree to Merge Residential and Automobile Insurance Operations; Sul America and Bradesco Next?