Regulatory Alerts2018-03-22 | CD-SIBOIF-1049-1-MAR22-2018Added · Updated
Norm Reforming Articles 5, 6, 7, 11, 13, 19, 36, 37, 38, 39, 40, 41, 43 and 52; and Annex 3 of the Reinsurance, Fronting and Co-insurance Standard
The Superintendence of Banks and Other Financial Institutions of Nicaragua amends the Reinsurance, Fronting and Co-insurance Standard to update registration requirements for reinsurers and reinsurance brokers, including mandatory risk ratings, audited financial statements, and annual information updates. The reform establishes a minimum professional civil liability bond of US$2,500,000 for brokers with a 2% deductible, sets a 0.5% contribution to the Superintendence's budget for national brokers, and defines specific documentation and operational rules for fronting and co-insurance activities. These changes apply to local insurance companies, foreign reinsurers, reinsurance brokers, and fronting companies, entering into force upon notification.