Resolution JPRF-M-2025-0165 Amending the Mandatory Investment Norm for Prepaid Comprehensive Health Service Financing Companies

Address: Av. Amazonas between Pereira and Unión Nacional de Periodistas Governmental Financial Management Platform. Red Block, 8th floor | Postal Code: 170507 | Quito - Ecuador | Resolution No. JPRF-M-2025-0165 THE FINANCIAL POLICY AND REGULATION BOARD CONSIDERING: That, Article 82 of the Constitution of the Republic of Ecuador prescribes that the right to legal certainty is based on respect for the Constitution and the existence of prior, clear, public legal norms applied by competent authorities; That, Article 84 of the Supreme Norm prescribes that every body with normative power shall have the obligation to formally and materially adapt laws and other legal norms to the rights provided for in the Constitution; That, Article 226 of the Fundamental Norm precepts that State institutions, their bodies, dependencies, public servants, and persons acting by virtue of a state power shall exercise only the competencies and faculties attributed to them in the Constitution and the law; having the duty to coordinate actions for the fulfillment of their purposes and to make effective the enjoyment and exercise of the rights recognized in the Constitution; That, Article 227 of the Magna Carta establishes that public administration constitutes a service to the community that is governed by the principles of effectiveness, efficiency, quality, hierarchy, deconcentration, decentralization, coordination, participation, planning, transparency, and evaluation; That, the Organic Law of Public Integrity, published in the Third Supplement of the Official Register No. 68 of June 26, 2025, reformed several articles of Book I of the Organic Monetary and Financial Code, among them, it substituted Article 13 and created the Financial and Monetary Policy and Regulation Board, part of the Executive Function, as a public law legal entity, responsible for the formulation of monetary, credit, financial, securities, insurance, and prepaid comprehensive health service regulation and policy; That, the Fourth Transitional Provision of the Organic Law for the Strengthening of Protected Areas provides that, both the structure and the faculties of the Financial Policy and Regulation Board, provided for in the Organic Monetary and Financial Code before June 26, 2025, shall remain in force until the designation of the members of the Financial and Monetary Policy and Regulation Board by the National Assembly; That, Article 13 of the Organic Monetary and Financial Code, Book I, prior to the reform of June 26, 2026, established that the Financial Policy and Regulation Board is part of the Executive Function, as a public law legal entity, with administrative, financial, and operational autonomy, responsible for the formulation of credit, financial, securities, insurance, and prepaid comprehensive health service regulation and policy; That, Article 14 ibidem, prior to the reform of June 26, 2026, in its numbers 1, 2, and 3, determined that, within the scope of the Financial Policy and Regulation Board, it corresponded to formulate the policy for prepaid comprehensive health services; as well as, to issue regulations that allow maintaining the comprehensiveness, solidity, sustainability, and stability of prepaid comprehensive health services; and, to issue micro-prudential regulations for prepaid comprehensive health services; determining that, for the fulfillment of these functions, the aforementioned Board would issue norms in the matters proper to its competence, without being able to alter legal provisions; being able to issue regulations by segments, economic activities, and other criteria; That, the aforementioned organic code, in its Article 14.1 prior to the reform of June 26, 2026, prescribed that, for the performance of its functions, the Financial Policy and Regulation Board had to comply with certain duties and exercise certain faculties; among which were those indicated in its numbers 1, 7, and 27, which were: to regulate the creation, constitution, organization, activities, operation, and liquidation of prepaid comprehensive health service entities; to issue the prudential regulatory framework to which companies financing prepaid comprehensive health services must be subject, a framework that must be coherent and not give rise to regulatory arbitrage; and, to exercise the other functions, duties, and faculties assigned to it by the cited Code and the law; That, Article 1 of the Organic Law that Regulates Companies that Finance Prepaid Comprehensive Health Services and Insurance Companies that Offer Medical Assistance Insurance Coverage, states that the purpose of said law is to regulate the constitution and functioning of companies that finance prepaid comprehensive health services; to regulate, supervise, and control the provision of said services to guarantee the full exercise of users' rights; to establish the faculties and attributions to establish and approve the content of prepaid comprehensive health service and medical assistance insurance plans and contracts; as well as to determine the competence for the application of the sanctioning regime and the resolution of disputes; That, in accordance with what is stated in Article 2 ibidem, the Organic Law that Regulates Companies that Finance Prepaid Comprehensive Health Services and Insurance Companies that Offer Medical Assistance Insurance Coverage is applicable to all activities developed, in fulfillment of their corporate object, by companies that finance prepaid comprehensive health services; That, Article 3 of the aforementioned organic law determines as guiding principles for the application of said law, those of legality, juridicity, inclusion, equity, precaution, equality, non-discrimination, sustainability, bioethics, gradualism, sufficiency, efficiency, effectiveness, transparency, timeliness, quality, warmth, free competition, responsibility, and participation; That, Article 10 of the Organic Law that Regulates Companies that Finance Prepaid Comprehensive Health Services and Insurance Companies that Offer Medical Assistance Insurance Coverage, when referring to solvency regimes, equity, technical reserves, and provisions, prescribes that companies that finance prepaid comprehensive health services must maintain at all times solvency requirements, based on technical equity, mandatory investments, as constituted and accounted technical reserves, calculated by qualified actuaries, which will include: reserves for services provided and not reported, reserves for services provided and reported; and, those others determined by the Superintendent of Companies, Securities and Insurance; That, Article 17 of the aforementioned organic law states, in its numbers 1 and 8, that the Superintendent of Companies, Securities and Insurance, regarding companies that finance prepaid comprehensive health services, will have, among others, the faculties of corporate, financial, and non-health contractual supervision and control, in accordance with what is established in the Companies Law, Organic Monetary and Financial Code, the Organic Law that Regulates Companies that Finance Prepaid Comprehensive Health Services and Insurance Companies that Offer Medical Assistance Insurance Coverage itself, and the regulations, resolutions, and other current normative; as well as, the other faculties provided for in the Law; That, the First General Provision of the Organic Law that Regulates Companies that Finance Prepaid Comprehensive Health Services and Insurance Companies that Offer Medical Assistance Insurance Coverage, provides that the Financial Policy and Regulation Board, provided for in the Organic Monetary and Financial Code, will have the faculty to issue regulations applicable to companies that finance prepaid comprehensive health services, of an economic, financial, and accounting nature; and, in relation to the methodology and method of calculation of technical reserves, established by said law and those determined by the Superintendent of Companies, in accordance with what is provided in Article 10 of the aforementioned Organic Law, taking into account obligatorily their characteristics and specificities; That, the Fifty-Fourth Transitional Provision of the previously mentioned Code determines the transitional regime of resolutions of the Codification of the Financial and Monetary Policy and Regulation Board, establishing that: "(...) The resolutions contained in the Codification of Monetary, Financial, Securities and Insurance Resolutions of the Financial and Monetary Policy and Regulation Board and the norms issued by the control bodies, will maintain their validity until the Financial and Monetary Policy and Regulation Board and the Financial Policy and Regulation Board decide what corresponds, within the scope of their competencies."; That, the Twentieth Transitional Provision of the General Regulation to the Organic Law of Public Integrity states that the resolutions contained in the Codification of Monetary, Financial, Securities and Insurance Resolutions issued by the Financial Policy and Regulation Board and by the Financial and Monetary Policy and Regulation Board, will maintain their validity until the Financial and Monetary Policy and Regulation Board adopts the corresponding decisions within the scope of their competencies; That, through Resolution JPRF-M-2025-0147 of April 9, 2025, the Financial Policy and Regulation Board issued the "Mandatory Investment Norm for Companies that Finance Prepaid Comprehensive Health Services", contained in Chapter III "Mandatory Investment Norm for Companies that Finance Prepaid Comprehensive Health Services" of Title VII "Technical Prudential Norms for Companies that Finance Prepaid Comprehensive Health Services", Book III "Private Insurance System" of the Codification of Monetary, Financial, Securities and Insurance Resolutions, which establishes in its transitional provisions the parameters and criteria for the application of its provisions; That, the First Transitional Provision of Chapter III "Mandatory Investment Norm for Companies that Finance Prepaid Comprehensive Health Services" of Title VII "Technical Prudential Norms for Companies that Finance Prepaid Comprehensive Health Services", Book III "Private Insurance System" of the Codification of Monetary, Financial, Securities and Insurance Resolutions, incorporated through the aforementioned Resolution JPRF-M-2025-0147, establishes a term of one (1) year for the complete implementation of the norm according to the schedule issued by the Superintendent of Companies, Securities and Insurance; while, the Fifth Transitional Provision of the aforementioned chapter states that, once the Superintendent of Companies, Securities and Insurance defines the methodology for the technical matching of reserves, as well as the structure and content of the reports determined in the third and fourth transitional provisions of said section, companies that finance prepaid comprehensive health services will have a term of six (6) months for its implementation and operational adaptation, ensuring compliance with the guidelines of the present norm; That, through Letter No. 005-DE-AEEMIP-2025 of July 3, 2025, the Ecuadorian Association of Prepaid Comprehensive Medicine Companies submitted to the Financial Policy and Regulation Board the "TECHNICAL-LEGAL REPORT FOR THE REFORM OF RESOLUTION JPRF-M-2025-0147 – MANDATORY INVESTMENTS FOR COMPANIES THAT FINANCE PREPAID COMPREHENSIVE HEALTH SERVICES", in which -as the associative body of prepaid health companies- they request, justify, and motivate the need to reform the First and Fifth Transitional Provisions of the "Mandatory Investment Norm for companies that finance prepaid comprehensive health services"; That, the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on August 29, 2025 and carried out through video conference on September 2, 2025, learned of Memorandum No. JPRF-ST-2025-0054-M of August 29, 2025, issued by the Technical Secretary of the Board; as well as the Technical-Legal Report No. JPRF-CTCJ-2025-004 of August 29, 2025, issued by the Technical Secretariat of this Board, and the corresponding draft resolution; That, the Financial Policy and Regulation Board, in an ordinary session held by technological means, convened on August 29, 2025 and carried out through video conference on September 2, 2025, learned of and approved the following Resolution; and, In exercise of its functions, RESOLVES: ARTICLE FIRST.- Add as Sixth General Provision of Chapter III "Mandatory Investment Norm for Companies that Finance Prepaid Comprehensive Health Services", Title VII "Technical Prudential Norms for Companies that Finance Prepaid Comprehensive Health Services", Book III "Private Insurance System" of the Codification of Monetary, Financial, Securities and Insurance Resolutions, the following text: "SIXTH.- The Superintendent of Companies, Securities and Insurance shall reform the content of the implementation schedule of this norm; informing thereof on October 1, 2025, both to its regulated subjects and to the body in charge of the formulation of policy and the regulation of finance, securities, insurance, and prepaid comprehensive health services." ARTICLE SECOND.- Add as Seventh General Provision of Chapter III "Mandatory Investment Norm for Companies that Finance Prepaid Comprehensive Health Services", Title VII "Technical Prudential Norms for Companies that Finance Prepaid Comprehensive Health Services", Book III "Private Insurance System" of the Codification of Monetary, Financial, Securities and Insurance Resolutions, the following text: "SEVENTH.- The Superintendent of Companies, Securities and Insurance, by January 29, 2027, will submit a consolidated report of the mandatory investment information of companies that finance prepaid comprehensive health services to the Financial Policy and Regulation Board or its designee, from which this information must continue to be submitted with quarterly periodicity, with disaggregated information at the monthly level." ARTICLE THIRD.- Substitute the text of the first paragraph of the First Transitional Provision of Chapter III "Mandatory Investment Norm for Companies that Finance Prepaid Comprehensive Health Services", Title VII "Technical Prudential Norms for Companies that Finance Prepaid Comprehensive Health Services", Book III "Private Insurance System" of the Codification of Monetary, Financial, Securities and Insurance Resolutions, with the following: "FIRST.- The Superintendent of Companies, Securities and Insurance will carry out all actions that allow achieving one hundred percent (100%) application of this norm until December 31, 2026." ARTICLE FOURTH.- In the Fifth Transitional Provision of Chapter III "Mandatory Investment Norm for Companies that Finance Prepaid Comprehensive Health Services", Title VII "Technical Prudential Norms for Companies that Finance Prepaid Comprehensive Health Services", Book III "Private Insurance System" of the Codification of Monetary, Financial, Securities and Insurance Resolutions, substitute the text "six (6) months" with: "one (1) year". ARTICLE FIFTH.- Repeal the Seventh Transitional Provision of Chapter III "Mandatory Investment Norm for Companies that Finance Prepaid Comprehensive Health Services", Title VII "Technical Prudential Norms for Companies that Finance Prepaid Comprehensive Health Services", Book III "Private Insurance System" of the Codification of Monetary, Financial, Securities and Insurance Resolutions. UNIQUE GENERAL PROVISION.- The Superintendent of Companies, Securities and Insurance will communicate to the respective controlled entities the content of this Resolution. FINAL PROVISION.- This Resolution will enter into force from the present date, without prejudice to its publication in the Official Register, and will be published on the institutional website of the Financial Policy and Regulation Board within a maximum term of two days from its issuance. COMMUNICATE.- Given in the Metropolitan District of Quito, on September 2, 2025. THE PRESIDENT, Mgs. María Paulina Vela Zambrano The aforementioned Resolution was processed and signed by Master María Paulina Vela Zambrano, President of the Financial Policy and Regulation Board, in the Metropolitan District of Quito, on September 2, 2025.- I CERTIFY. TECHNICAL SECRETARY, Mgs. Luis Alfredo Olivares Murillo