Regulatory Alerts1997-01-08 | CD-SUPERINTENDENCIA-XLIX-1-97Added · Updated
Norms Relating to the Solvency Margin of Insurance Institutions
The document establishes the minimum solvency margin requirements for insurance institutions, distinguishing between damage insurance and life insurance. For damage insurance, the margin is calculated based on annual premiums or paid claims, applying specific percentages (18% and 16% on premiums; 26% and 23% on claims) adjusted by reinsurance ratios with minimum thresholds of 50%. For life insurance, the margin is the sum of 4% of mathematical reserves and 0.3% of sums at risk, also adjusted by reinsurance ratios with minimum thresholds of 85% and 50% respectively, with specific modifications for additional benefits, temporary policies under five years, and investment-linked funds. The solvency margin must not be lower than the Risk Equity defined in previous regulations on debt limits.