Brazilian insurance and reinsurance regulator SUSEP recently issued guidance stating that it does not consider valid reinsurance issued to group health organizations, medical cooperatives and autogestion organizations. Instead, SUSEP states in the recent release, only properly-organized health insurance companies are authorized to purchase reinsurance and any reinsurance sold to any other type of health organization will be considered invalid by SUSEP.
Osvaldo Macias, a spokesman for Chile’s insurance regulator, the Superintendencia de Valores y Seguros, recently stated that the agency believes that “very important and profound regulatory changes” should be made in the nation’s insurance market, particularly as to valuation and calculation of minimum surplus capital. When asked about the feasibility of implementing Solvency II in Chile and the rest of Latin American, Mr. Macias expressed support for the project but noted that significant time and resources would be necessary to implement such a project in Latin America and certain adaptations would likely be necessary.
Mexican financial services watchdog Condusef, recently released figures indicating that the largest insurance industry players continue to grow rapidly, while small to medium-sized companies are experiencing stagnation and even decline in total premiums. According to the figures, the five largest insurance companies in Mexico (Metlife, Grupo Nacional Provincial, AXA, BBVA Bancomer and Inbursa) account for 52% of total premiums in the market and experienced total growth of over 38% when comparing the first four months of 2009 to the same period in 2008. By comparison, medium-sized firms experienced 12% contraction in total premiums and small firms’ total premiums grew by only 1.84%.
Peruvian insurance association Apeseg recently released figures indicating that the nation’s insurance industry grew by 24.9% when comparing the first five months of 2009 to the same period in 2008. Total premiums for the period were US$ 695 million, led by 33.2% growth in general insurance premiums, including 50.8% auto insurance premium growth.
Rafic Souki, a member of the Venezuelan legislature’s Subcommittee on Banking and Insurance, recently indicated that approval of the new insurance law is gaining momentum, and that the latest version of the law would provide that the Superintendency of Insurance would be empowered to set premiums and establish requirements for general conditions and particular provisions in all types of insurance policies issued in the country.