From the end of 2015
onwards, new pro – market administrations were implemented in the Argentine
insurance market. As per the previous administration, there were regulations
setting limits on investments in hard currencies and for productive projects.
These restrictions were removed by the latest administration. Relaxation of
stringent regulations on reinsurance with foreign carriers was also
implemented, while simultaneously increasing the minimum capital for insurers
to promote more reliable and solvent entities. A recent trend has also been
observed in the Supreme Court of Justice to protect the interests of insurers
by affirming the validity and enforce ability of the insurance contracts and
policy limits, exclusions and deductibles in spite of consumer protection
regulation.
The report Governance, Risk
and Compliance- the Argentine Insurance Industry provides
an overview of the insurance regulatory framework in Argentina. It gives the
latest key changes and changes expected in the country's insurance regulatory
framework. The report provides key regulations and market practices related to
different types of insurance product in the country and rules and regulations
pertaining to key classes of compulsory insurance and the scope of non-admitted
insurance in Argentina. The key parameters including
licensing requirements permitted foreign direct investment, minimum capital
requirements, solvency and reserve requirements and investment regulations and details
of the tax and legal systems in the country are detailed in the report.
The primary legislation in Argentina includes the
Insurance Law (17,418); the Insurance Companies Law (20,091); the General
Regulation of Insurance Activity, which sets out the main regulations for the
insurance and reinsurance industry; and the Law on Insurance Brokers (22,400).
The SSN is the primary government regulatory body for insurance corporations.
However they are subject to the jurisdiction of other government authorities
like Public Registry of Commerce (which maintains a register of all commercial
entities), Federal Public Income (which is responsible for federal tax matters
and provincial tax offices), Consumer protection authorities, at national,
provincial or municipal levels, Super intendence of Labour Risks (which
supervises and regulates labour risks insurers) and Financial Information Unit
(which is responsible for preventing money laundering and terrorist financing).
The future trends can expect to see more regulatory
changes in developed markets and Argentina’s neighbours, with accord to the
Association of Insurance Supervisors of Latin America and the International
Association of Insurance Supervisors. Financial markets and permissible
investments are likely to see various reforms to enable long term investments.
Due to modernisation and digitalisation, insurance market is witnessing online
registration and electronic selling of insurance. All of this will be
accompanied with stricter regulation and supervision of insurers.
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