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Market spotlight

Trends and prospects

What are the current trends in and future prospects for the insurance and reinsurance markets in your jurisdiction?

Significant changes have taken place in the Argentine (re)insurance market since the end of 2015, when a new, more pro-market administration took office.

The new authorities have eliminated certain regulations that established mandatory investments in the so-called ‘productive projects’ selected by the previous administration, and regulations that set limits on investments in hard currencies. The new authorities have also begun to relax the stringent restrictions imposed on reinsurance with foreign carriers, while significantly increasing the minimum capital required for insurers and reinsurers in order to ensure more reliable and solvent local entities.

The new authorities also plan to make the following changes:

  • Regulatory changes in line with best practice in more developed markets and Argentina’s Latin American neighbours, and in line with the codes of practice of the Association of Insurance Supervisors of Latin America and the International Association of Insurance Supervisors.
  • Reform of the financial markets and permissible investments by insurers to enable more long-term investment (particularly for life insurance products).
  • Advances in the modernisation of the insurance market, the online registration of policies and claims and the electronic selling of insurance.
  • Greater rigour in the supervision and regulation of local insurers and reinsurers.

There is also a growing trend in the Supreme Court of Justice to provide greater certainty to insurers by rendering decisions affirming the validity and enforceability of policy limits, exclusions and deductibles with respect to aggrieved third parties, in spite of consumer protection regulation (eg, Flores v GiménezObarrio v Microómnibus Norte SAGauna v La Economía Comercial SA de Seguros General and Buffoni v Castro).

Regulatory framework

Legislation

What is the primary legislation governing the (re)insurance industry in your jurisdiction?

The primary legislation includes:

  • the Insurance Law (17,418);
  • the Insurance Companies Law (20,091);
  • the General Regulation of Insurance Activity, approved by the Argentine Superintendence of Insurance (SSN) (Resolution 38,708), which sets out the main regulations for the insurance and reinsurance industry; and
  • the Law on Insurance Brokers (22,400).

Regulators

Which government bodies regulate the (re)insurance industry in your jurisdiction and what is the extent of their powers?

The SSN is the government body responsible for regulating and supervising the (re)insurance industry.

Companies are also regulated by other government bodies, such as:

  • the Public Registry of Commerce, which keeps a register of commercial entities;
  • the Federal Public Income Administration and provincial tax offices;
  • consumer protection authorities at federal, provincial and municipal level;
  • the Superintendence of Labour Risks, which regulates (together with the SSN) employment risk insurers; and
  • the Financial Information Unit, which is responsible for preventing money laundering and terrorist financing.

Ownership and organisational requirements

Ownership of (re)insurers

Are there any restrictions on ownership of or investment in (re)insurers in your jurisdiction, including any limits on foreign ownership/investment?

There are no specific restrictions.

What regulations, procedures and eligibility criteria govern the transfer of control of/acquisition of a stake in a (re)insurer?

The prior approval of the Argentine Superintendence of Insurance (SSN) is required for any share transfer of insurers or local reinsurers. Until the SSN has given its authorisation, the transfer cannot take place. To apply for the SSN’s approval, the following information on the proposed transfer must be submitted:

  • information on the main characteristics of the transaction;
  • the number of shares to be transferred, along with their class, votes, nominal value and negotiation value; and
  • the payment terms.

The information and documents to be submitted vary depending on whether purchasers are individuals or legal entities. In general, this includes:

  • affidavits on their assets and the origin and legality of funds;
  • criminal records;
  • a copy of their bylaws;
  • financial statements; and
  • information on members of the board of directors and other officers.

The SSN will evaluate whether purchasers are suitable, as well as their conduct and background.

Local antitrust rules may also require notification to the Antitrust Commission.

Organisational requirements

Must (re)insurers adopt a certain legal structure in order to operate? If no mandatory company organisation applies, what are the common structures used?

Insurers

Only entities with the following legal structures may apply to operate in the insurance market:

  • corporations, cooperatives or mutual societies;
  • branches or agencies of foreign insurers; and
  • national, provincial or municipal state-owned entities.

Reinsurers To act as local reinsurers, entities must have the following legal structure:

  • corporations, cooperatives and national mutual societies; and
  • branches of foreign reinsurance entities.

Do any particular corporate governance requirements apply to (re)insurers, including any eligibility criteria for directors and officers?

Directors must be persons suitable for the exercise of their function. This is evaluated based on their past activity at other insurers or financial entities, or in a function with similar responsibility in other public or private entities. At least two-thirds of the total number of directors must prove their experience in the insurance industry. The general manager and other managers with decisive powers in regard to decisions related directly to the insurance industry must also prove their suitability and previous experience in this industry.

The General Regulation of Insurance Activity further provides that members of the management and supervisory bodies cannot have been:

  • convicted of certain crimes;
  • disqualified from using a bank account;
  • penalised as directors or managers of a company declared bankrupt; or
  • declared responsible for the liquidation of an insurer.

Operating requirements

Authorisation procedure

Which (re)insurers must obtain authorisation from the regulator before operating on the market and what is the procedure for doing so?

Persons, goods and any other insurable interest of Argentine jurisdiction can be insured only with insurers licensed by the Argentine Superintendence of Insurance (SSN).

Reinsurance and retrocessions must also primarily be placed with local reinsurers. Local reinsurers are Argentine corporations, cooperatives and national mutual societies or branches of foreign reinsurance entities licensed by the SSN. Local reinsurers must have local capital.

Admitted reinsurers are foreign reinsurers which act from their home offices and must be registered with the SSN. Admitted reinsurers may also write Argentine risks subject to the following limitations:

  • contracts starting from July 1 2017 – up to a maximum of 50% of premiums ceded under the contract;
  • contracts starting from July 1 2018 – up to a maximum of 60% of premiums ceded under the contract; and
  • contracts starting from July 1 2019 – up to a maximum of 75% of premiums ceded under the contract.

To obtain a licence as an insurer or a local reinsurer from the SSN, a company must comply with the following General Regulation of Insurance Activity requirements:

  • It must have insurance or reinsurance activity as its exclusive corporate purpose.
  • It must comply with minimum capital requirements.
  • It must be registered with the Public Registry of Commerce.
  • It must file a feasibility report and business plan.

The SSN will also evaluate the integrity, experience and solvency of shareholders and officers.

An admitted reinsurer must comply with the following requirements to register with the SSN:

  • It must be set up and authorised to reinsure foreign risks.
  • It must have a minimum net worth.
  • It must prove that the legislation in force in its country of origin allows it to comply with its commitments (derived from reinsurance contracts) abroad in freely convertible currency.
  • It must provide evidence of credit ratings for the past three years.

Financial requirements

What are the minimum capital and solvency requirements for (re)insurers operating in your jurisdiction?

Insurers must have a minimum capital that depends on the highest of the following three parameters:

  • lines of business;
  • written premium; and
  • claims.

Local reinsurers must have a minimum capital that depends on the higher of the following two parameters:

  • Ps350 million (approximately $19.4 million at the time of writing); or
  • written premium.

Admitted reinsurers must have a net worth not lower than $100 million.

Do any other financial requirements apply?

Insurers and local reinsurers must also meet other financial and solvency ratios.

Personnel qualifications

Are personnel of (re)insurers subject to any professional qualification requirements?

Directors must be persons suitable for the exercise of their function. This is evaluated based on their past activity at other insurers or financial entities, or in a function with similar responsibility in other public or private entities. At least two-thirds of the total number of directors must prove their experience in the insurance industry. The general manager and other managers with decisive powers in regard to decisions related directly to the insurance industry must also prove their suitability and previous experience in this industry.

The General Regulation of Insurance Activity further provides that members of the management and supervisory bodies cannot have been:

  • convicted of certain crimes;
  • disqualified from using a bank account;
  • penalised as directors or managers of a company declared bankrupt; or
  • declared responsible for the liquidation of an insurer.

Business plan

What rules and requirements govern the business plans of (re)insurers?

To apply for an insurance or local reinsurance licence, an applicant must submit a business plan for the next three years, which must be filed along with a report issued by an independent actuary and an auditor, both registered with the SSN.

In general, business must include:

  • lines of insurance;
  • characteristics of the products;
  • risk profile;
  • provisions relating to the economic and financial situation of the entity;
  • reinsurance programmes;
  • marketing methods and channels;
  • computer systems projects;
  • appointment of certain officers;
  • staffing; and
  • outsourced activities.

Risk management

What risk management systems and procedures must (re)insurers adopt?

In their business and financial plans insurers must:

  • describe their underwriting and selection of risks profile;
  • indicate whether they will write catastrophic risks and provide certain specifications on how they will deal with them; and
  • describe policies, procedures and internal controls to fight against fraud in the insurance sector.

Reporting and disclosure

What ongoing regulatory reporting and disclosure requirements apply to (re)insurers?

Entities that have obtained the corresponding authorisation and licence from the SSN must submit a report on the evolution of their business and financial plans two years after they start operations.

Among other requirements, they must also:

  • keep accounting books and records;
  • file financial, accounting and other reports;
  • notify or seek approval for certain corporate actions (eg, shareholders' meetings and amendments to bylaws); and
  • keep certain minimum reserves and capital.

Other requirements

Do any other operating requirements apply in your jurisdiction?

Re(insurance) is a heavily regulated activity and many other operating requirements apply to the activity.

Non-compliance

What are the consequences of non-compliance with the operating requirements applicable to (re)insurers?

Insurers and local reinsurers are subject to penalties from the SSN for failure to comply with applicable legal and regulatory requirements, including warnings, fines, suspensions and revocation of the licence.

The SSN can suspend or cancel the registration of an admitted reinsurer when it fails to comply with the relevant regulatory requirements.

Contracts

General

What general rules, requirements and procedures govern the conclusion of (re)insurance contracts in your jurisdiction?

The Argentine Superintendence of Insurance (SSN) must approve the wording and conditions of all insurance policies.

Insurers must provide policyholders with policies that are signed, clearly written and easy to read, and which contain the following:

  • the name and domicile of the parties;
  • the interest or life insured;
  • the risks written by the insurer;
  • the inception date;
  • the term for which risks are covered;
  • the premium;
  • the sum insured; and
  • the general conditions.

Exclusions must be written in prominent and clear writing and included in an annex to the policy.

Insurers must deliver the policy to the insured, through a means that allows them to prove receipt, within 15 days of the date on which the contract is entered into.

Policies must be written in Spanish, except for marine insurance policies, which can be written in a foreign language.

Parties to a reinsurance contract are free to agree on most of the conditions.

Mandatory/prohibited provisions

Are (re)insurance contracts subject to any mandatory/prohibited provisions?

Insurance contract

The Insurance Law (17,418) includes a number of terms that are implied into the insurance contract, which can be divided into three categories:

  • Mandatory terms – terms that, due to their wording, nature or legal provision are mandatory (eg, misrepresentation and non-disclosure and their effects).
  • Implied terms – terms that can be modified only to the insured's benefit (eg, the possibility of mitigating the effects of misrepresentation in the absence of bad faith, the term for reporting a loss and the notice that an insurer must give if it rescinds a policy).
  • Terms that can be freely modified by the parties – any other term that does not fall within any of the previous categories.

Reinsurance contract In reinsurance contracts, certain clauses are mandatory.

For instance, contracts must be governed by Argentine law and disputes will be resolved within the Argentine jurisdiction.

They must include a clause whereby, in the event of liquidation of the cedant, the reinsurer will pay directly to the liquidator any outstanding balances, regardless of whether the cedant has complied with its obligations to the insured.

All of the brokerage commissions and expenses agreed in each operation must be specified in both the cover notes and reinsurance contracts.

Other terms can be freely negotiated between the parties.

Implied terms

Can any terms by implied into (re)insurance contracts (eg, a duty of good faith)?

All contracts must be made, interpreted and performed in good faith. Contracts mandate not only what is formally expressed, but also any consequences to which parties acting with care and diligence may reasonably be obligated. This particularly applies to insurance contracts, where both the insured and the insurer are deemed subject to the duty of utmost good faith. 

Standard/common terms

What standard or common contractual terms are in use?

Insurance

In insurance contracts, common contractual terms in use are:

  • the risk covered;
  • the exclusions;
  • the term to report a loss;
  • the premium payment requirements;
  • misrepresentation and non-disclosure;
  • aggravation of risks; and
  • a rescission clause.

Reinsurance In reinsurance contracts, common contractual terms are:

  • the claims control clause;
  • follow the fortune;
  • the applicable law;
  • termination; and
  • arbitration.

‘Smart’ contracts

What is the state of development in your jurisdiction with regard to the use of ‘smart’ contracts (ie, blockchain based) for (re)insurance purposes? Are any other types of financial technology commonly used in the conclusion of (re)insurance contracts?

We are not aware of any developments with smart contracts or other types of financial technology locally used in the conclusion of (re)insurance contracts.

Breach

What rules and procedures govern breach of contract (for both (re)insurer and insured)?

The breach of an insurance policy by an insurer enables the insured to claim on the basis of ordinary contractual liability. Liability can also extend to foreseeable indirect damages.

Punitive damages can be awarded to a consumer for violations of the Consumer Protection Law. The maximum amount that can be awarded to a consumer is Ps5 million (approximately $280,000 at the time of writing).

If the Insurance Law does not determine the effect of non-compliance with a condition or obligation on the insured, the parties may agree on the forfeiture of the insured’s rights if the breach is due to its negligence, according to the following regime (Article 36 of the Insurance Law):

  • If the condition or obligation must be fulfilled before the loss, the insurer must claim that the insured has forfeited its rights within a month.
  • When the loss occurs before the insurer can claim that the insured has forfeited its rights, the insurers will be bound to cover if the breach had no influence on the occurrence of the loss or on the extent of the insurer’s obligation.
  • If the condition or obligation must be executed after the loss, the insurer will decline liability if the breach had an effect on the extent of the insurer’s obligation.

Consumer protection

Regulation

What consumer protection regulations are in place to safeguard the rights of purchasers of insurance products and services?

Consumer protection rights have been constitutionally protected in Argentina since 1994 when the Constitution was amended (Section 42). Those constitutional rights were further regulated mainly by the Consumer Protection Law 1993. Since then, several amendments have considerably enhanced consumer rights – Law 24,568 (1995), Law 24,787 (1997), Law 24,999 (1998), Law 26,361 (2008) and Law 26,993 (2014).

Although the Consumer Protection Law includes the main regulations on consumer protection, the Civil and Commercial Code (2015) and the Fair Trade Law (22,802, 1983) also provide such regulation.

For insurance activity, some of the most relevant consumer protection provisions are as follows.

Customer information Suppliers must provide consumers with clear, adequate and non-misleading information about the essential characteristics of the products and services they offer. The information must be provided to consumers before, during and after the execution of the contract (Section 4 of the Consumer Protection Law). The information must be delivered in Spanish and be fully comprehensible to the consumer.

Fair treatment of consumers Suppliers must ensure conditions of adequate support and fair treatment to consumers. Suppliers must refrain from engaging in behaviour that puts consumers in difficult situations. Suppliers cannot discriminate against consumers by applying different prices or technical or commercial conditions on the goods and services that they sell.

Premiums must be based on technical facts and equity principles to ensure that they are not abusive or discriminatory to policyholders.

Marketing and promotion Information included in advertisements is considered to form part of contract and binds the supplier that makes such advertising. Suppliers must promote their products and services without misleading consumers.

Terms and conditions and policy servicing Insurance products can be marketed only once they have been approved by the Argentine Superintendence of Insurance (SSN). The SSN closely reviews policy terms and conditions to confirm that they comply with all applicable regulations and are fair.

Doubts about the interpretation of the terms and conditions of the service must be interpreted in favour of the consumer (Section 19 of the Consumer Protection Law).

Certain terms and conditions are considered abusive, and therefore unenforceable against consumers – for example:

  • disclaimers of liability;
  • waivers or limitations of consumers’ rights;
  • the supplier’s unilateral right to construe, amend or terminate the contract;
  • opt-out sells;
  • shifting the burden of proof and restrictions on means of evidence; and
  • jurisdiction clauses.

Similarly, the Insurance Law (17,418) includes a number of terms that are implied into the insurance contract, mainly aimed at protecting policyholders.

Regardless of the SSN's approval, the courts can still nullify clauses that they consider abusive. Information, contracts and practices are also subject to the scrutiny of consumer protection agencies.

Consumers have the right to a mandatory 10-day cooling-off period to revoke the acceptance of the contract. Consumers must be informed of this before, during and after acceptance of the offer.

Penalties for violations to consumer protection regulations In case of violation of the Consumer Protection Law, consumer protection agencies may impose the following penalties on suppliers:

  • fines of up to Ps5 million (approximately $280,000 at the time of writing);
  • confiscation of the goods and products;
  • closing the commercial establishment for 30 days;
  • suspension for five years from being a supplier of the government; and
  • loss of concessions, privileges, special taxes or credit regimes.

The Consumer Protection Law also introduced punitive damages and class actions to the Argentine legal system. Consumers can be awarded up to a maximum of Ps5 million (approximately $280,000 at the time of writing) for violations of the Consumer Protection Law.

The SSN may also impose penalties.

Claims

General

What general rules, requirements and procedures govern the filing of insurance claims?

The insured must give notice of the loss within three days after becoming aware of the loss, although this time limit may be extended in the insurance policy.

The insured must provide to the insurer, at its request, all information to verify the loss and may examine the administrative or judicial proceedings related to the claim. This request must be made within 30 days of the loss being reported. The beginning of the 30-day period within which the insurer must decide whether to accept or reject a claim is then postponed until either:

  • the insurer has received relevant information to reject the claim; or
  • the insured has provided all the information requested by the insurer.

Once the relevant information has been received, the insurer must decide on whether to cover or decline liability for the claim within 30 days (or 15 days for life and personal accident insurance). If the insurer does not reject the claim in a timely manner, it is deemed to have accepted the loss. 

Time bar

What is the time bar for filing claims?

General limitation period

The limitation period for claims brought under an insurance contract is one year from the date when the relevant obligation becomes payable.

In life insurance, the one-year limitation period starts from the date when the beneficiary becomes aware that he or she is a named beneficiary. This limitation period cannot be extended until three years from the date of death of the insured.

Reinsurance contracts There is no express legal provision concerning limitation periods in reinsurance contracts. The courts have generally applied a one-year limitation period, equating reinsurance to insurance. In the absence of a specific rule, the general limitation period is five years (Article 2560 of the Civil and Commercial Code).

Denial of claim

On what grounds can the (re)insurer deny coverage?

(Re)insurers may deny coverage:

  • when a loss is not within the risks covered by the policy;
  • if an event listed in the exclusions;
  • when the loss occurred while coverage was suspend for non-payment of the premium; or
  • for breach of a condition. 

What rules and procedures govern the insured’s challenge of the denial of a claim?

Disputes between insurers and insureds are usually settled before the ordinary, civil or commercial courts, according to each jurisdiction.

In cases commenced under a consumer relationship, judges will usually apply the rules of summary proceedings.

Third-party actions

On what grounds can a third party file a claim directly with the (re)insurer?

A non-life insurance contract can be made for the benefit of a third party. To enforce the contract, the third party will be required to produce the insurance policy or provide evidence of the policyholder's consent.

In life insurance, appointed beneficiaries can claim directly against the insurer once the event occurs.

In civil liability insurance, the victim of a tort is entitled to have the insurer join the proceedings.

Insureds have no action against reinsurers.

Punitive damages

Are punitive damages insurable?

There is no specific regulation regarding the insurability of punitive damages.

Subrogation

What regime governs (re)insurers’ subrogation rights?

The rights that correspond to the insured against a third party due to loss are transferred to the insurer up to the amount of the moneys paid. The insured is responsible for any act that prejudices this right of the insurer. Subrogation does not apply in life insurance.

Through subrogation, the insurer acquires a derived right, assuming the same position that the insured had with respect to the responsible third party. This implies that all rights, guarantees and actions of the insured are transferred to the insurer, and that the responsible third party can submit to the insurer all the defences that it has against the insurer, and those it had against the insured.

There is no specific regulation regarding rules of subrogation for reinsurance contracts, but this can be agreed by the parties.

Intermediaries

Regulation

How are the services of insurance intermediaries regulated in your jurisdiction?

In insurance intermediation there are two key figures: insurance agents and insurance brokers.

Insurance agents are appointed by insurers and sell insurance on their behalf. Insurance agents are regulated mainly by Argentine Superintendence of Insurance (SSN) Resolution 38,052.

In order to operate, they must be authorised by the SSN and be registered in the Register of Insurance Agents. Only legal entities with at least two years of experience in their main activity can apply for this registration. In general, these are large legal entities (eg, banks, retailers with a large clientele to whom they can also offer insurance products).

Insurance brokers intervene in the conclusion of insurance contracts between insurers and insureds and, in principle, do not represent any of the parties. They are regulated by Law 22,400. Brokers must be registered with the SSN Insurance Brokers Registry.

Tax

Tax liability

What tax liabilities arise in the conduct of (re)insurance business?

Insurers and reinsurers

At a federal level, insurers and reinsurers are subject to the following taxes:

  • Income tax – this is charged on the accrued income at a 35% rate.
  • Tax on presumed minimum income – the total value of the company's assets is taxed at the rate of 1%. Corporate income tax payable for the same fiscal year is allowed as a credit towards this minimum tax. To the extent that this minimum tax payable exceeds the corporate income tax payable in the same fiscal year, the amount of any excess minimum tax paid can be carried forward as a credit against any corporate income tax liability for the following 10 years.
  • Value added tax – this is charged at a 21% rate and levied on all insurance services except for:
    • retirement insurance;
    • life insurance;
    • labour risks insurance; and
    • related reinsurance or retrocession protections.

The following taxes apply only to insurers:

  • Excise tax – the general rate is 8.5% of the premium. Labour risks contracts are subject to a reduced 2.5% rate. Life and personal accident insurance contracts are exempt, as well as some contracts associated with agricultural activities.
  • The Argentine Superintendence of Insurance fee of 0.6% on premiums paid by insureds.
  • Firemen tax of 0.32% of non-life insurance premiums.

At a local level, insurers and reinsurers must pay turnover tax, which is levied on gross income resulting from business activity carried on within the respective provincial jurisdiction. Each province and the city of Buenos Aires apply different tax rates and exemptions, although the general tax rates for services range between 3% and 5.5%.

Insurers are also subject to the local stamp tax, which is levied on public or private instruments that are either:

  • executed in Argentina; or
  • executed abroad, but are deemed to have effects in one or more relevant jurisdictions within Argentina.

In general, this tax is calculated on the economic value of the instrument. Each jurisdiction applies different tax rates (usually 1% or 1.2%) and exemptions.

Insurance brokers and reinsurance intermediaries Insurance brokers and reinsurance intermediaries are subject to:

  • income tax;
  • tax on presumed minimum income;
  • value added tax;
  • turnover tax; and
  • stamp tax. 

Insolvency

Regulation

What regime governs the insolvency of (re)insurers?

In the event that an insurer or reinsurer becomes insolvent:

  • the Argentine Superintendence of Insurance (SSN) must revoke its licence; and
  • the commercial courts must order its liquidation.

The liquidation process is governed by the Bankruptcy Law (24,522, as amended). The SSN will act as liquidator. The liquidator can terminate insurance contracts with 15 days’ notice. The insurer is liable for losses incurred during that period, unless the insured replaces the protection with another insurance contract. In life insurance the liquidator must transfer the existing policies through a bidding process. If transfer is not possible, the liquidator is entitled to terminate policies.

Effect on insureds

How does a (re)insurer’s insolvency affect insureds and the (re)insurer’s obligations to insureds?

In a liquidation process insureds have, as a group, a preferred credit over the balance due from the reinsurer.

Reinsurance contracts must include a clause whereby, in the event of liquidation of the cedant, the reinsurer will pay directly to the liquidator any outstanding balances, regardless of whether the cedant has complied with its obligations to the insured.

Dispute resolution

Litigation

Are there any compulsory or preferred venues for insurance litigation in your jurisdiction?

There are no special venues for insurance litigation. Cases are generally heard at the commercial, civil or labour courts.

However, insurance claims can also be brought in certain specific venues:

  • the Department of Guidance and Assistance to the Insured, within the Argentine Superintendence of Insurance;
  • the insured customer service department of each insurer;
  • the Insurance Ombudsman, which operates within the Argentine Association of Insurance Companies and has jurisdiction on claims over Ps2,000 (approximately $112 at the time of writing) and under Ps177,000 (approximately $9,840 at the time of writing); and
  • consumer protection agencies.

Law 26,993 created COPREC, a new agency that will deal exclusively with consumer claims under fast-track procedures and subject to new rules which provide for:

  • gratuity;
  • oral procedure;
  • short deadlines;
  • restrictions on the admitted evidence;
  • no preliminary defences; and
  • pro-consumer approach.

How are insurance disputes with a cross-border element handled in your jurisdiction?

The cross-border element is usually present only in reinsurance contracts, as Argentine law on non-admitted insurance makes it necessary to insure Argentine interests with Argentine licensed insurers. 

What issues are commonly the subject of insurance litigation?

The following issues often lead to insurance litigation:

  • claims on tacit acceptance of claims by insurers;
  • exclusions of coverage and their interpretation;
  • deductible and coverage limits; and
  • consumer rights.

What is the typical timeframe for insurance litigation?

On average, litigation takes approximately four years from inception to sentence.

Arbitration

What regime governs the arbitrability of insurance disputes?

Arbitration clauses cannot be included in insurance policies. Nevertheless, an arbitration agreement may be reached after a conflict has arisen.

Arbitration clauses are admitted in reinsurance agreements, provided that the seat of the arbitration is in Argentina.