Regulatory Alerts2024-07-19
Added · Updated
Recopilación de Normas de Seguros y Reaseguros – Normative Modifications Regarding Pending Claim Reserves When Lawsuits Are Filed Against the Insurer
The Superintendence of Financial Services replaces Article 29 of the Insurance and Reinsurance Norms Compilation to establish detailed calculation methods for pending claim reserves. Insurers must apply specific valuation criteria for reported claims, including mandatory minimum reserves of 20% of the updated claimed amount for litigation cases under certain conditions, and utilize triangle methods or average-based estimates for unreported claims based on data availability. The regulation also defines the methodology for calculating insufficiency of calculation reserves and mandates specific accounting disclosures, with the modifications entering into force on October 1, 2024.
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