The Monetary Board amends the Regulation for Corporate Governance of insurance and reinsurance companies

On January 19th, 2018, the resolution JM-2-2018 of the Monetary Board was published in the Official Gazette, amending the resolution JM-62-2016, "Regulation for Corporate Governance of Insurance and Reinsurance Companies". The provisions became effective as of the day of its publication.

The main purpose of this amendment is the incorporation of certain guidelines to reinforce the corporate governance practices in insurance and reinsurance companies, based on international standards.

Among the most relevant provisions is the implementation of specific policies to assess the capacity of the members of the board of directors, general manager or whoever acts as such, and the officials reporting directly to them; as well as the internal auditor, considering their economic solvency, integrity, honesty, responsibility, knowledge and experience.

Furthermore, the following provisions were included:

  1. The Audit Committee will be responsible to ensure compliance with the corporate governance and internal control system policies and procedures.
  2. The Compliance Administrative Unit will rely upon the Committee designated by the Board and not exclusively upon the Audit Committee.