Regulatory Alerts2024-12-30
Added · Updated
Compilation of Insurance and Reinsurance Regulations – Capital Requirement for Market and Counterparty Risk
The Superintendency of Financial Services replaced Articles 19, 20, and 21 and incorporated new Articles 21.1 to 21.8 in Title I Bis – Minimum Capital, Book II – Stability and Solvency of the Compilation of Insurance and Reinsurance Regulations. These amendments redefine the minimum capital for insurance companies, requiring it to be the greater of basic capital and risk-based capital, with an exception for companies with net retained premiums below UI 180,000,000. The document details basic capital requirements for different operational groups and introduces new methodologies and formulas for calculating capital requirements for market risk (including interest rate, equity, exchange rate, readjustment, spread, and real estate risks) and counterparty risk. These provisions will take effect on January 1, 2028.