The legislatures of Venezuela, Guatemala and Nicaragua have each recently approved new laws governing the activities of insurers, reinsurers and (re)insurance intermediaries concerning risks located within the respective countries. The new laws in Nicaragua and Guatemala were driven by the requirements of the Dominican Republic--Central America Free Trade Act, while the changes in Venezuela were motivated by perceived abuses in the industry and the need to further protect consumers.
These new laws fundamentally overhaul the regulatory schemes applicable to both domestic and foreign insurance and reinsurance entities with activities concerning these jurisdictions, including adjustments to premium taxation rates, minimum requirements for authorization, approval of insurance products, conduct of cross-border business and penalties for non-compliance with local laws and regulations.
