Latin American Developments

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In a recent interview with Latino Insurance, Manuel Aguilera, president of Mexico’s insurance regulator (Comision Nacional de Seguros y Fianzas), reportedly commented that implementation in Latin America of the concepts underlying Solvency II is an important and achievable goal for each of the countries’ regulators. 

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Read More Solvency II in Latin America? La Latinoamericanizacion de Solvencia II . . .

Region: ING Latin America recently reported that its pre-tax profits in the region were up 17% (US$95 million) when comparing 1Q09 to 1Q08.  After excluding currency effects, the growth was even more pronounced at more than 33%. 

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Read More Latin American Update: Developments in the Region, Mexico, Ecuador, Nicaragua and Costa Rica

The United States International Trade Commission recently released its report Property and Casualty Insurance Services: Competitive Conditions in Foreign Markets.  In preparing its report, drafted at the request of the United States Trade Representative of the Office of the President of the United States, the USITC reviewed non-tariff restrictive measures in 72 countries. …
Read More United States International Trade Commission Releases Report: Property and Casualty Insurance Services: Competitive Conditions in Foreign Markets

BN Americas reports that Mapfre America, Mapfre’s Latin American subsidiary, achieved net profits of US$ 39.4 million in the first quarter of 2009, an increase of 49.7% over the first quarter of 2008.  Mapfre’s worldwide net profits reportedly increased only 0.2% for the same period, demonstrating the important role of Latin America in driving Mapfre’s growth in business volume and profits. …
Read More Mapfre’s Latin American Net Profits Up 49.7% in First Quarter 2009

Brazil: According to SUSEP, the Brazilian insurance regulator, total premiums for February 2009 reached R$ 5.4 billion (US$ 2.57 billion), an 11.3% increase from February 2008 but a 3.2% decline compared to January 2009.  Taken together, total premiums in January and February 2009 (excluding health insurance) were 3.8% higher than the same period in 2008. …
Read More Latin American Update: Developments in Brazil, Chile, Venezuela, Costa Rica, Bolivia

Brazil: The Brazilian government is expected to soon announce the creation of a credit guarantee fund for small and medium-sized businesses in order to encourage bank lending to such entities.  The fund would be used to guarantee a percentage of bank loans made to qualifying businesses. …
Read More Latin American Update: Brazilian Government to Launch Credit Insurance; First Title Insurer Authorized in Chile; Ninth Central American and Caribbean Insurance Congress to be Held in Costa Rica; Proposed New Venezuelan Insurance Law Encounters Opposition

In a recent interview with Insurance Day, the president of IRB-Brasil Re, Eduardo Nakao, reportedly commented that the reinsurance market opening has had less impact than expected, with the IRB has maintaining 90% of its business since the end of the company’s previous monopoly over the Brazilian reinsurance market in April 2008. 

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Read More Brazil Update: IRB Won’t Cede Market Share Without A Fight; Local Commentator Calls for Further Easing of Occasional Reinsurer Cession Limits; Foreign Reinsurers Continue to Struggle with Unclear Taxation Laws

Under Ley 253 de 1995 (Ley de Seguro de Responsabilidad Obligatorio para Vehiculos de Motor), a system of compulsory minimum automobile coverage was instituted in Puerto Rico.  The coverage, obtained from the Puerto Rican government itself, currently carries a premium of $99 per year. …
Read More Puerto Rico: Insurance Commissioner Considers 20% Reduction in Compulsory Auto Insurance Premiums

As previously discussed here, Brazilian law previously imposed a 10% limit on total annual premiums that a local insurer could cede to an occasional foreign reinsurer.  On April 27, 2009, however, the Superintendencia de Seguros Privados (SUSEP), the Brazilian insurance regulator, relaxed that limitation significantly, but only as to two lines of business. …
Read More Brazil Raises Cession Limit to Occasional Foreign Reinsurers for Surety and Petroleum Lines