Technical Standards for the Submission and Collection of Information for the Accounting and Statistical System of Insurance Companies

INSURANCE COMPANIES
Approval: 28/06/2024
Validity: 16/07/2024

THE COMMITTEE OF STANDARDS OF THE CENTRAL RESERVE BANK OF EL SALVADOR,

CONSIDERING:
I. That Article 86 of the Insurance Companies Law establishes that insurance companies must send to the Superintendency of the Financial System any information that is relevant or necessary to prepare statistics on the insurance activity.
II. That Article 3, letter c) of the Financial System Supervision and Regulation Law establishes that it is the responsibility of the Superintendency of the Financial System to proactively monitor the risks of the members of the financial system and the way in which they manage them, ensuring the prudent maintenance of their solvency and liquidity.
III. That Article 7, letter e) of the Financial System Supervision and Regulation Law establishes that insurance companies, their branches abroad, and the branches of foreign insurance companies established in the country are subject to the provisions of said Law and therefore to the supervision of the Superintendency of the Financial System.
IV. That Article 32 of the Financial System Supervision and Regulation Law establishes that it may require supervised entities direct access to all data, reports, or documents regarding their operations through the means and form that it defines. When it deems it convenient, the Superintendency may require direct real-time access to the information systems of the supervised entities.
V. That Article 99, third paragraph, letter a) of the Financial System Supervision and Regulation Law establishes that the Committee of Standards of the Central Reserve Bank of El Salvador is responsible for approving technical standards, instructions, and on any other aspect inherent to risk management by the supervised entities.
VI. That in accordance with Article 101, fourth paragraph of the Financial System Supervision and Regulation Law, the powers to approve, modify, and repeal technical standards that must be complied with by the members of the financial system and other supervised entities are transferred to the Central Reserve Bank of El Salvador.

THEREFORE,

by virtue of the regulatory powers conferred by Article 99 of the Financial System Supervision and Regulation Law,

INSURANCE COMPANIES
Approval: 28/06/2024
Validity: 16/07/2024

AGREES to issue the following:

TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

CHAPTER I
OBJECTIVE, SUBJECTS, AND TERMS

Objective
Art. 1.- These Standards aim to determine the processes for sending, validating, and submitting financial accounting information that will feed the Accounting and Statistical System of Insurance Companies (SCOE), which entities subject to its application must send to the Superintendency of the Financial System, with the purpose that it be uniform, timely, and of quality.

Subjects
Art. 2.- The subjects obligated to comply with the provisions established in these Standards are:
a) Insurance Companies constituted in El Salvador; b) Branches of foreign insurance companies established and authorized in the country; and c) Cooperative Associations that provide insurance services, constituted in the country.

Terms
Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning:
a) Central Bank: Central Reserve Bank of El Salvador; b) Insurance Companies: Subjects referred to in Article 2 of these Standards; c) SCOE: Accounting and Statistical System of Insurance; and d) Superintendency: Superintendency of the Financial System.

CHAPTER II
DATABASE, REQUIRED INFORMATION, AND VALIDATION

Accounting and Statistical System of Insurance Art. 4.- The database receiving the accounting and extra-accounting information sent by Insurance Companies shall be called SCOE.

Required Information
Art. 5.- The financial accounting information to be submitted to the Superintendency by Insurance Companies is as follows:

a) Balances of Insurance Company Accounts; b) Extra-Accounting Variables of Insurers; c) Companies in which Insurers invest; d) Investment by Institution; e) Balances of Insurance Company Accounts in December; and f) Calculation of the instrument by Institution.

The above information will be processed in files that will be prepared according to the structure of the files presented in Annex No. 3 of these Standards.

Description of required information
Art. 6.- The required information consists of the definitive figures from the current account catalog for Insurance Companies and extra-accounting information necessary to establish the minimum net worth and for the diversification of investments, which is detailed in the annexes of these Standards.

For the proper functioning and uniformity of the SCOE, the account catalog must be sent in its entirety, even if some accounts show a zero balance.

Methods for sending information
Art. 7.- Insurance Companies must submit SCOE information in the manner established by the Superintendency.

Data Validation
Art. 8.- In order to achieve the established objectives and for the proper functioning of the SCOE, the Superintendency will make available to Insurance Companies a program that will validate the data. Insurance Companies must respect the regulations in these Standards.

Any changes to the data validation program will be notified to Insurance Companies in a timely manner by the Superintendency.

Art. 9.- The submission of information will be considered valid if it complies with the validations established by the Superintendency.

Correction of errors
Art. 10.- In the event that errors occur in the submission of information, the SCOE will not accept the information as valid and it will be rejected.

Responsibility for information
Art. 11.- Directors, managers, and employees responsible for the preparation or review of the information will be personally liable for any errors, omissions, and irregularities it contains.

CHAPTER III
SUBMISSION OF INFORMATION TO THE SUPERINTENDENCY

Delivery Dates
Art. 12.- The information will be processed in files; these will be prepared according to the file structure and data dictionary presented in Annexes No. 3 and No. 4 of these Standards and must be submitted to the Superintendency within the first five days of the month following the month to which the information refers, except for the month of June, which must be submitted within the first fifteen business days, and for the month of December, within the first twenty business days, both in the following month.

Art. 13.- The information received by the Superintendency may be modified by the Insurance Company within the established deadline for its presentation; once this deadline has expired, it will be considered definitive; however, the Insurance Company may request the respective substitution, justifying it appropriately. Nevertheless, even if authorized, the information will be considered received out of time for the pertinent legal effects.

CHAPTER IV
OTHER PROVISIONS AND VALIDITY

Sanctions
Art. 14.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Financial System Supervision and Regulation Law.

Repeal
Art. 15.-
Information for the Accounting and Statistical System of Insurance Companies (Resolution No. 09-09), approved by the Board of Directors of the Superintendency of the Financial System in Session No. CD-64/2000 of December 7, 2000, whose Organic Law was repealed in accordance with Legislative Decree No. 592 containing the Financial System Supervision and Regulation Law, published in the Official Diary No. 23, Volume No. 390, dated February 2, 2011.

Transitory
Art. 16.-
For the Collection of information for the Accounting and Statistical System of Insurance Companies (Resolution No. 09-09), and which were in process at the time these Standards entered into force, will continue and be concluded in accordance with the regulations under which they began.

Unforeseen Aspects
Art. 17.- Aspects not provided for in regulatory matters in these Standards will be resolved by the Central Bank through its Committee of Standards.

Validity
Art. 18.- These Standards will enter into force from the sixteenth of July of two thousand twenty-four.

Annex No. 1

LIST OF INVESTMENT INSTRUMENTS
CODE DESCRIPTION
01 SECURITIES ISSUED BY THE STATE, THROUGH THE GENERAL TREASURY DIRECTORATE.
02 SECURITIES ISSUED BY THE BCR.
03 SECURITIES ISSUED OR GUARANTEED BY STATE ENTERPRISES AND AUTONOMOUS OFFICIAL INSTITUTIONS, EXCEPTING THOSE OF THE DEVELOPMENT BANK OF THE REPUBLIC OF EL SALVADOR (BANDESAL) AND THE SOCIAL FUND FOR HOUSING. 04 SECURITIES ISSUED BY BANDESAL. 05 NEGOTIABLE OBLIGATIONS ISSUED BY SALVADORIAN COMPANIES FOR MORE THAN ONE YEAR. 06 SECURITIES ISSUED WITH REAL GUARANTEE TO FINANCE THE ACQUISITION OF HOUSING. 07 SHARES OF SALVADORIAN COMPANIES. 08 PARTICIPATION CERTIFICATES IN SALVADORIAN INVESTMENT FUNDS. 09 FOREIGN INVESTMENTS. 10 DEPOSITS AND SECURITIES ISSUED OR GUARANTEED BY SALVADORIAN BANKS. 11 LOANS. 12 PREMIUMS RECEIVABLE (UP TO THE VALUE OF RESERVES FOR RISKS IN COURSE). 13 LOANS GUARANTEED BY LIFE INSURANCE POLICIES (UP TO THE SURRENDER VALUE). 14 ORGANIZATION EXPENSES AND INVESTMENTS IN FURNITURE AND EQUIPMENT. 15 NON-RESIDENTIAL URBAN REAL ESTATE. 16 OTHER PUBLIC OFFERING INSTRUMENTS

Annex No. 2

LIST OF INVESTMENT LIMITS BY ISSUER AND ISSUE
CODE DESCRIPTION
01 INVESTMENT BASE
02 ASSET OF THE ISSUER
03 ASSET OF THE BUSINESS GROUP
04 SECURITIES SAME ISSUE
05 SECURITIES SAME FUND
06 CAPITAL OF ISSUER

Annex No. 3

FILE STRUCTURE
A. XML Database Structure.
The data structure is defined with the following files:
File Name Description ssf_scoe_saldo_cuenta.xsd BALANCES OF INSURANCE COMPANY ACCOUNTS ssf_scoe_variable_extracontable.xsd EXTRA-ACCOUNTING VARIABLES OF INSURERS ssf_scoe_sociedad_inversion.xsd COMPANIES IN WHICH INSURERS INVEST ssf_scoe_inversion.xsd INVESTMENT BY INSTITUTION ssf_scoe_saldo_cuenta_diciembre.xsd BALANCES OF INSURANCE COMPANY ACCOUNTS IN DECEMBER ssf_scoe_instrumento.xsd CALCULATION OF THE INSTRUMENT BY INSTITUTION B. Data structure for information submission. The information will be submitted with the following files:
File Name Description saldo_cuenta.xml BALANCES OF INSURANCE COMPANY ACCOUNTS variable_extracontable.xml EXTRA-ACCOUNTING VARIABLES OF INSURERS sociedad_inversion.xml COMPANIES IN WHICH INSURERS INVEST inversion.xml INVESTMENT BY INSTITUTION saldo_cuenta_diciembre.xml BALANCES OF INSURANCE COMPANY ACCOUNTS IN DECEMBER

Annex No. 3
1) File Name: saldo_cuenta.xml
ELEMENT TYPE LENGTH DECIMALS DESCRIPTION id_catalogo_cuenta XsString 13 0 Account Code nombre_cuenta XsString 135 0 Account Name saldo_seguro XsDecimal 17 2 Balance
2) File Name: variable_extracontable.xml
ELEMENT TYPE LENGTH DECIMALS DESCRIPTION id_codigo_extracontable XsString 13 0 Extra-Accounting Account Code nombre_vari XsString 80 0 Variable Name valor_vari XsDecimal 17 2 Variable Value
3) File Name: sociedad_inversion.xml
ELEMENT TYPE LENGTH DECIMALS DESCRIPTION nit XsString 14 0 Tax Identification Number nombre_sociedad XsString 60 0 Company Name direccion XsString 50 0 Address tipo_nit XsString 1 0 NIT Type

Annex No. 3
4) File Name: inversion.xml

ELEMENT TYPE LENGTH DECIMALS DESCRIPTION id_instrumento_inversion XsString 2 0 Investment Instrument Code nit XsString 14 0 NIT id_concepto_inversion XsString 2 0 Investment Concept Code valor_inversion XsDecimal 17 0 Investment Value
5) File Name: saldo_cuenta_diciembre.xml

ELEMENT TYPE LENGTH DECIMALS DESCRIPTION id_catalogo_cuenta XsString 13 0 Account Code nombre_cuenta XsString 135 0 Account Name saldo_seguro XsDecimal 17 2 Balance

Annex No. 4

DATA DICTIONARY
This data dictionary contains the characteristics of the elements that form the required structure. A- File: saldo_cuenta.xml

These data also apply to the file saldo_cuenta_diciembre.xml It will contain the account catalog information with balances of insurance companies. The account and description fields must not be modified by the insurers, otherwise the validator will reject it.

FIELD: id_catalogo_cuenta
DESCRIPTION: Accounting account code
COMMENT: These account codes must be recorded up to a maximum of 13 digits, left-justified and without zero padding. Correct Format: Account: ASSET Code: 1 Incorrect Format: Account: ASSET Code: 1000000000000 This value must not be modified, as doing so will cause the validator to reject the submission.

FIELD: nombre_cuenta
DESCRIPTION: Account description
COMMENT: It must be left-justified and written in UPPERCASE.
Like the account code, this value must not be modified, as it corresponds to the account code in the catalog. FIELD: saldo_seguro DESCRIPTION: Account balance as of the date. COMMENT: It must always be sent for all accounts, even if the balance is zero. All account balances must have the sign according to the type of movement they reflect, that is, sign "+" for accounts starting with digits 1, 4, 6, and 8; except for 1299, 1399, 1499, 1799, 1899, 1999, 6299; Sign "-" for accounts starting with 2, 3, 5, 7, and 9; except for 3101020, 3301020, 3801020, 3802020.

Annex No. 4
B- File variable_extracontable.xml

File of extra-accounting variables to be sent to the Superintendency. The codes and descriptions of these accounts must not be modified, otherwise the validator will reject the submission. This information corresponds to data that is not reflected through accounts in the catalog and is necessary for solvency margin and investment calculations. FIELD: id_codigo_extracontable DESCRIPTION: Code of the extra-accounting variable to be sent to the Superintendency. COMMENT: The value of this variable will be provided by the Superintendency (Annex No. 6) and must not be modified, otherwise the validator will reject it. FIELD: nombre_vari DESCRIPTION: Name or description of the extra-accounting variable to be sent to the Superintendency. COMMENT: Like the id_codigo_extracontable, this value will be provided by the Superintendency and must not be modified; otherwise, the validator will reject the information. FIELD: valor_vari DESCRIPTION: Value of the extra-accounting variable to be sent to the Superintendency COMMENT: This value must be entered by the insurers; values with a negative sign must not be entered, all values must be positive. C- File sociedad_inversion.xml File containing the companies in which insurance companies invest. Only companies in which companies invested in the month of submission will be listed. The company identifier will be the NIT field; this number must be the Tax Identification Number provided by the Ministry of Finance, in the case of companies registered by said Ministry; or a number that will serve as the NIT number for non-resident or non-domiciled companies, provided by the Superintendency, in the case of foreign companies not registered by the Ministry of Finance. In the latter case, insurers will be obligated to send the lists of foreign companies for which there is no NIT, so that the Superintendency generates one, which they must place in this file. The codes generated by the Superintendency for foreign companies will be validated upon receiving the submission from the insurers.

Annex No. 4
FIELD: Nit
DESCRIPTION: NIT of the company in which the insurer has invested COMMENT: This NIT must be a valid number, provided by the Ministry of Finance, or a number provided by the Superintendency, for those foreign companies that do not have an NIT from the Ministry of Finance. It must be entered without hyphens.

FIELD: nombre_sociedad
DESCRIPTION: Name of the company in which the insurance company has invested.
COMMENT: Every company must have an assigned name; it cannot be left blank.
The letter "Ñ" (<alt 165>) must not be replaced by any other character (#, %, or N). Below are some examples of the correct way to enter company names:

Correct Format Incorrect Format
CORPECA, S.A. DE C.V. CORPECA, S. A. DE C. V.
LA COOPERATIVA DE R.L. LA COOPERATIVA DE R. L.
It can be observed in the previous examples that before and after the comma (",") that separates the company name from the initials "S.A." there must be no spaces. Similarly, there must be no spaces before and after the period (".") that separates the initials "S.A.". The above also applies to the initials "R.L." FIELD: Direccion DESCRIPTION: Address of the company in which the insurance company has invested. COMMENT: Enter in uppercase letters. FIELD: tipo_nit DESCRIPTION: Type of company identifier; this refers to the value stored in the NIT field, which can be an extended NIT assigned by the Ministry of Finance or a number generated by the Superintendency of the Financial System, for foreign companies that do not have an NIT from said Ministry. COMMENT:
stored in the NIT field, whether it is an NIT assigned by the Ministry of by the Superintendency.

Annex No. 4

D- File inversion.xml
This contains the detail of the values invested in the different companies by insurance companies. It must store the invested information, according to the investment instrument and the diversification of the values of said instrument. FIELD: id_instrumento_inversion DESCRIPTION: Investment instrument code. COMMENT: This must be the instrument code assigned by the Superintendency, which is found in Annex No. 1. FIELD: Nit DESCRIPTION: NIT of the company in which the insurer has invested. COMMENT: This value must appear only once in the File sociedad_inversion.xml; otherwise, the submission will be rejected. In this table, it may be repeated in different instruments, but not in the same instrument. FIELD: id_concepto_inversion DESCRIPTION: Investment limit code according to diversification by Issuer and Issue. COMMENT: This code must be repeated only once for each investment instrument. The list of these codes is found in Annex No. 2. the others are optional. FIELD: valor_inversion DESCRIPTION: Value corresponding to each investment limit by Issuer and Issue. COMMENT: This value must have a positive sign.

Annex No. 5
VALIDATOR PROGRAM ERROR LIST
CODE
ERROR DESCRIPTION
FILES THAT PRODUCE THE ERROR saldo_cuenta.xml variable_extracontable.xml sociedad_inversion.xml inversion.xml FILE.XML DOES NOT EXIST X XML FILE STRUCTURE INCORRECT X ACCOUNT CODE IN CATALOG IS REPEATED X ACCOUNT CODE IS DIFFERENT FROM THAT OF THE SUPERINTENDENCY OR DOES NOT EXIST X ACCOUNT DESCRIPTION IS DIFFERENT FROM THAT OF THE SUPERINTENDENCY OR DOES NOT EXIST X INCORRECT POSTING, BALANCE DIFFERENT FROM THE BALANCE OF THE PROGRAM X INCORRECT BALANCE SIGN X MAIN ITEMS DO NOT EXIST X ACCOUNT BALANCE MUST BE GREATER THAN THE PROVISION X 10 MAIN ITEM HAS NO BALANCE X 11 BALANCE DOES NOT BALANCE X

Annex No. 5
VALIDATOR PROGRAM ERROR LIST
CODE
ERROR DESCRIPTION
FILES THAT PRODUCE THE ERROR saldo_cuenta.xml variable_extracontable.xml sociedad_inversion.xml inversion.xml BALANCE BALANCE IS EQUAL TO ZERO X ACCOUNT BALANCE 8 IS DIFFERENT FROM ACCOUNT BALANCE 9 X INCORRECT INSURER CODE X 15 DECEMBER SUBMISSION INCORRECT X ACCOUNT BREAKDOWN 120105 DOES NOT BALANCE X ACCOUNT 130207 HAS A BALANCE AND THE SURRENDER VALUE IS 0, OR VICE VERSA X THE INVESTMENT BASE CANNOT BE ZERO X 19 REINSURANCE CANNOT BE ZERO X SUMS INSURED CONTRACTS OF EXCESS OF LOSS CANNOT BE ZERO X NIT OF COMPANY IN WHICH THE INSURER INVESTS IS INCORRECT X

Annex No. 5
VALIDATOR PROGRAM ERROR LIST
CODE
ERROR DESCRIPTION
FILES THAT PRODUCE THE ERROR saldo_cuenta.xml variable_extracontable.xml sociedad_inversion.xml inversion.xml CODE OF THE EXTRA-ACCOUNTING VARIABLE IS DIFFERENT FROM THE CODE OF THE SUPERINTENDENCY. X DESCRIPTION OF THE EXTRA-ACCOUNTING VARIABLE IS DIFFERENT FROM THE DESCRIPTION ESTABLISHED BY THE SUPERINTENDENCY. X NIT OF COMPANY IN FILE inversion.xml DOES NOT EXIST IN FILE sociedad_inversion.xml X CODE OF INVESTMENT INSTRUMENT IS DIFFERENT FROM THE ESTABLISHED BY THE SUPERINTENDENCY. X CODE OF INVESTMENT LIMIT BY ISSUER AND ISSUE (INVESTMENT BASE, ASSET OF THE ISSUER, SAME ISSUE VALUE, ETC.) IS DIFFERENT FROM THE ESTABLISHED BY THE SUPERINTENDENCY. X

Annex No. 5
VALIDATOR PROGRAM ERROR LIST
CODE
ERROR DESCRIPTION
FILES THAT PRODUCE THE ERROR saldo_cuenta.xml variable_extracontable.xml sociedad_inversion.xml inversion.xml THE INVESTED VALUE BY INVESTMENT INSTRUMENT DOES NOT BALANCE WITH THE VALUE REGISTERED IN ACCOUNTING X 28 FILE DOES NOT HAVE INFORMATION X NUMBER OF RECORDS IS DIFFERENT FROM THE FILES OF THE SUPERINTENDENCY. X X EXTRA-ACCOUNTING VARIABLE CODE IS REPEATED X COMPANY DESCRIPTION CANNOT BE BLANK X REPORTED INFORMATION IS EQUAL TO THAT OF THE PREVIOUS MONTH. X

OF INSURANCE COMPANIES

Approval: 28/06/2024
Validity: 16/07/2024

Annex No. 6

LIST OF EXTRA-ACCOUNTING VARIABLES

CODE	DESCRIPTION
COASEGURO	CO-INSURANCE
CREDITO_RELA	RELATED CREDITS
EXCESO_PERD	CONTRACTS IN EXCESS OF LOSS
FSV	ACCOUNT BREAKDOWN 120105 (FSV)
OTRAS_INSTIT	ACCOUNT BREAKDOWN 120105 (OTHER INSTITUTIONS)
RESERVA_SANEA	REHABILITATION RESERVE
RES_CED_EXT	LIABILITIES CEDED TO FOREIGN FIRST-TIER COMPANIES WITH EARTHQUAKE
RES_CED_LOC	LIABILITIES CEDED TO LOCAL COMPANIES FOR POLICIES WITH EARTHQUAKE (ZONE 1)
RES_CED_OTRA	LIABILITIES CEDED TO OTHER FOREIGN COMPANIES WITH EARTHQUAKE
RES_POL_ZONA1	LIABILITY FOR ACTIVE INSURANCE POLICIES WITH EARTHQUAKE (ZONE 1)
RES_REA_ZONA1	LIABILITY FOR REINSURANCE TAKEN WITH EARTHQUAKE (ZONE 1)
RES_RETRO_EXT	LIABILITY FOR RETROCESSIONS TO FOREIGN FIRST-TIER COMPANIES WITH EARTHQUAKE
RES_RETRO_LOC	LIABILITY FOR RETROCESSIONS TO LOCAL COMPANIES FOR EARTHQUAKE
RES_RETRO_OTR	LIABILITY FOR RETROCESSIONS TO OTHER FOREIGN COMPANIES WITH EARTHQUAKE
VALOR_RESCATE	SURRENDER VALUE