In order to prevent the misuse of customer information, the National Insurance and Bonds Commission recently amended the Insurance and Bonding Sole Provisions with regard to information gathered electronically. The amendments require insurers to implement security measures and mechanisms for the transfer, storage and processing of information generated electronically when:

  • contracting insurance and bonds; and
  • rendering other services to customers.

The amendments also require insurers and bonding and mutual companies to provide customers with the terms and conditions for the electronic contracting of insurance products.

The key amendments are as follows.

Providing terms and conditions for electronic contracting

The amendments set the requirements that insurers and bonding and mutual companies must comply with in order for customers to contract insurance products through electronic means, such as:

  • publishing the terms and conditions for contracting insurance products through electronic means online; and
  • including the option to use such electronic means and the link to the terms and conditions for doing so in an insurance product's contractual documentation.

Obtaining consent

The amendments extend the ways in which a customer can consent to a contract, taking into account recent technological advances, including:

  • mobile operations;
  • internet operations;
  • audio response operations; and
  • voice-to-voice telephone operations.

The form to obtain customer consent will be determined by the type of electronic operation executed.

Authentication factors

The amendments set out the authentication factor required for each type of electronic operation in order to secure the transfer, storage and processing of customer information. An 'authentication factor' is a mechanism that verifies a customer's identity in order to perform electronic operations. Authentication factors will vary depending on the type of transaction or service being requested.

List of services that can be executed electronically

The list of services that can be executed electronically has been extended to include:

  • securing life and accidental death insurance;
  • securing property and casualty and accident and health insurance, except coverage for accidental death or a bond;
  • cancelling an insurance or bond policy, except life or accidental death insurance; and
  • changing a password or personal identification number.

Insurers and bonding and mutual companies must comply with these amendments by January 1 2018.

For further information on this topic please contact Carlos Ramos Miranda at Hogan Lovells BSTL by telephone (+52 55 5091 0000) or email ( The Hogan Lovells website can be accessed at

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