The Superintendency of Insurance (SIS) issued three new resolutions that regulate the activity of reinsurers and reinsurance brokers.
Resolution No. 179/17 of October 2017 establishes the Reinsurance Management Regulations, and is applicable to insurance companies established in the country, to reinsurance brokers and to reinsurers. Said Resolution regulates, among others, the obligation to submit to the SIS all the documentation related to the reinsurance contracts entered into by the insurers. It also establishes certain mandatory clauses that every reinsurance contract must contain. On the other hand, it provides for the obligation of local insurers to keep certain information at the disposal of the SIS. Additionally, it establishes that any reinsurance contract signed in contravention of the Resolution will not be opposable to the SIS in order to prove compliance with legal and regulatory norms, nor will it be taken into account for technical provisions, without prejudice to administrative sanctions that may correspond. It is understood that within this last prohibition is the fact of entering into reinsurance contracts with foreign reinsurers not registered with the SIS. Lastly, the Resolution establishes that Resolution No. 26/08 (on periodicity of remission and formality of reinsurance contracts for registration in the SIS) and Resolution No. 145/12 (on the reinsurer's commitments and/or of the reinsurance broker derived from the judicialization of cases of rejections of compensation), in addition to any other that opposes the provisions of Resolution No. 179/17 are expressly derogated.
On the other hand, Resolution No. 213/17 of December 2017 regulates the Rules for the Registration, Revocation and Maintenance of Reinsurance Companies in the Registry of the SIS. This resolution is equally applicable to reinsurers, reinsurance brokers and local insurers. In relation to foreign reinsurers, it establishes that their participation in the local market is authorized provided that they comply with the requirements established by this Resolution, and that the SIS through an administrative act can authorize the registration of a foreign reinsurer in the registers in order to authorize their operation from abroad. The registration is valid for up to 2 years and not less than 1 year, with terms of uniform maturity as of March 31. Said Resolution regulates the requirements that foreign reinsurers must fulfil in the application for registration before the SIS, among which there are minimum international qualifications depending on the rating agency. Finally, the Resolution derogates Resolutions No. 13/2010 (on requirements and procedures for the registration, renewal, maintenance and exclusion of reinsurers from abroad in the SIS registry) and Resolution No. 145/12 (already referred to above in this article).
In turn, Resolution No. 214/17 of December 2017 establishes the Standards for Reinsurance Brokers, and is applicable to both the reinsurance brokers registered in the SIS and their representatives. The Resolution establishes the requirements to register or to renew the registration to act as a reinsurance intermediary, whether it is for natural or legal persons, either national or foreign. The Resolution provides that the registration or renewal will be valid for up to 2 years, and also mentions the persons who will not be able to act as reinsurance intermediaries or as representatives thereof, as well as the information that should be kept available for the SIS and that that must be sent to the SIS in each quarter. Finally, the Resolution repeals Resolution No. 15/96, Resolution No. 3/98 and Resolution No. 285/07.