Regulatory Alerts2019-06-11 | CD-SIBOIF-1116-1-JUN11-2019Norm on Management of Premiums Receivable for Insurance, Reinsurance, and Surety Companies
The Superintendent of Banks and Other Financial Institutions issued Resolution No. CD-SIBOIF-1116-1-JUN11-2019 to establish general guidelines for the management of premiums receivable by insurance, reinsurance, and surety companies. The regulation mandates that companies must recognize impairment and establish provisions for overdue premiums based on statistical recovery coefficients and aging ranges of 31-60, 61-90, and over 90 days. Additionally, it requires 100% provisioning for insolvent or unknown-address policyholders and sets an implementation deadline of January 1, 2020.
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