Technical Standards for the Submission of Information by Insurance Companies for the Preparation of Insurance Activity Statistics

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 1 of 16 CNBCR-02/2023 NRP-39 TECHNICAL STANDARDS FOR THE SUBMISSION OF INFORMATION BY INSURANCE COMPANIES FOR THE PREPARATION OF INSURANCE ACTIVITY STATISTICS Approval: 03/17/2023 Validity: 04/03/2023

THE STANDARDS COMMITTEE 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 Superintendence, at the times and in the manner it specifies, financial statements, summaries on the number and type of policies issued, net production, reinsurance, cessions, and in general, any other information that is relevant or necessary to prepare statistics on insurance activity. Likewise, it will send any information that is required by the Central Reserve Bank of El Salvador for the fulfillment of its functions. II. That Article 3, letter c) of the Law for the Supervision and Regulation of the Financial System, establishes that it is the responsibility of the Financial System Superintendence to proactively monitor the risks of the members of the financial system and the manner in which they manage them, ensuring the prudent maintenance of their solvency and liquidity. III. That Article 32, first paragraph, of the Law for the Supervision and Regulation of the Financial System, establishes that the Financial System Superintendence may require supervised entities direct access to all data, reports, or documents regarding their operations through the means and manner it defines. IV. That Article 37 of the Law for the Supervision and Regulation of the Financial System, establishes that supervised entities must facilitate, upon request of the Financial System Superintendence, through the means it deems appropriate, without invoking confidentiality or reserve, the examination of their business, acts, operations, assets, books, accounts, files, documents, correspondence, databases, and information systems, in all matters pertinent to the Supervision activity. V. That Article 88 of the Law for the Supervision and Regulation of the Financial System, establishes that the Superintendence will publish a statistical bulletin at least twice a year, containing detailed information of the members of the financial system and the operations they carry out. VI. That Article 89 of the Law for the Supervision and Regulation of the Financial System, establishes that the Financial System Superintendence must inform the public periodically, through the means it deems convenient, the objectives and functioning of the financial markets, in order to create financial and pension culture among users.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 2 of 16 CNBCR-02/2023 NRP-39 TECHNICAL STANDARDS FOR THE SUBMISSION OF INFORMATION BY INSURANCE COMPANIES FOR THE PREPARATION OF INSURANCE ACTIVITY STATISTICS Approval: 03/17/2023 Validity: 04/03/2023

VII. That Article 99, third paragraph, letters a) and b) of the Law for the Supervision and Regulation of the Financial System, establishes that it corresponds to the Standards Committee of the Central Reserve Bank of El Salvador the approval of technical standards for supervised entities, regarding transparency of information, as well as for members of the financial system to provide the public with sufficient and timely information on legal, economic, and financial aspects of each, in accordance with the laws that regulate them, as well as on the products and services they offer.

THEREFORE,

by virtue of the regulatory powers conferred by Article 99 of the Law for the Supervision and Regulation of the Financial System, AGREES to issue the following:

TECHNICAL STANDARDS FOR THE SUBMISSION OF INFORMATION BY INSURANCE COMPANIES FOR THE PREPARATION OF INSURANCE ACTIVITY STATISTICS

CHAPTER I OBJECTIVE, SUBJECTS, AND TERMS

Objective Art. 1.- These Standards aim to establish the conditions and requirements that obligated subjects must observe for the submission of information on insurance activity, which they must send periodically to the Financial System Superintendence.

Subjects Art. 2.- The subjects obligated to comply with the provisions established in these Standards are: a) Insurance companies incorporated in El Salvador; b) Branches of foreign Insurance companies established and authorized in the country; and c) Cooperative associations that provide insurance services incorporated 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) Entity(ies): Subjects obligated as referred to in Article 2 of these Standards; and c) Superintendence: Financial System Superintendence.

CHAPTER II ON THE REQUIRED INFORMATION

On the required information regarding insurance policies and bonds Art. 4.- Entities will send to the Superintendence, files with information related to insurance policies and bonds in accordance with what is established in Annex No. 1 of these Standards. This information must be sent monthly, within the first fifteen business days of each month, with the exception of information regarding the months of June and December, for which the deadline will be twenty and twenty-five business days respectively. (1)

On the required information for the preparation of the insurance statistical yearbook Art. 5.- Entities will send to the Superintendence, files with information related to annual data on premiums, claims, sums insured, mortality, contractual obligations, investments, premiums receivable, commissions, reserves, expenses, among others, in accordance with what is established in Annex No. 2 of these Standards. This information must be sent annually, within the first fifteen business days of the month of March of each year. (1)

On the certification signed by the internal auditor Art. 6.- Additionally, entities must send to the Superintendence, a Certification signed by the Internal Auditor of the entity in which it is verified that the information corresponding to the insurance yearbook has been reconciled with the balances of the Financial Statements that the entity submits for the Statistical Accounting System (SCOES) corresponding to December 31 of each year. This information must be sent annually, within the first ten business days of the month of March of each year.

CHAPTER III ON THE SUBMISSION OF INFORMATION

Means of information submission Art. 7.- The submission of information referred to in Articles 4, 5, and 6 of these Standards must be in electronic format through the means determined by the Superintendence, in order to streamline communication with entities and thus offer better quality and ease in the information reception service.

Responsible for sending information Art. 8.- Entities must appoint a delegate, who will be responsible for the submission of information to the Superintendence, in accordance with what is provided in these Standards. This person will also serve as the liaison with the Superintendence to resolve errors, omissions, and irregularities in the submitted information. This designation, as well as any modification thereof, must be officially communicated to the Superintendence within a maximum period of five business days from the appointment. In all cases, the entity may appoint a substitute delegate, so that, in the absence of the principal delegate, the activities regulated in these Standards can continue to be carried out. Their appointment will be made in the same manner as the principal delegate.

The Superintendence will notify entities of the means by which communication with the delegates selected by each entity will be carried out, and will provide the necessary credentials for access to the means defined for the electronic submission of information, within a period of eight business days from the receipt of the communication of the delegates by the entity.

Correction of information Art. 9.- In case of errors in the information sent to the Superintendence, it may warn entities to correct the deficiencies found. Entities will have a period of five business days counted from the day following the notification to correct the deficiencies or to present the documentation and information required by the Superintendence. Additionally, if the entity becomes aware of the error, it must communicate it immediately and will have, at most, the same period to correct it.

CHAPTER IV OTHER PROVISIONS AND VALIDITY

Technical details of information submission Art. 10.- The Superintendence will send to entities, with a copy to the Central Bank, the technical details related to the mechanisms for the submission of the information required in these Standards, which will be communicated within a maximum period of thirty days following the entry into force of these Standards. The information requests will be limited to the collection of information as regulated in these Standards. Art. 11.- Entities must implement the necessary mechanisms for the submission of information from Annex No. 1 within a maximum period of thirty days and for the information from Annex No. 2 within a maximum period of ninety days; both periods will be counted from the day following receipt of the technical details by the Superintendence, as referred to in the first paragraph of Article 10 of these Standards.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 5 of 16 CNBCR-02/2023 NRP-39 TECHNICAL STANDARDS FOR THE SUBMISSION OF INFORMATION BY INSURANCE COMPANIES FOR THE PREPARATION OF INSURANCE ACTIVITY STATISTICS Approval: 03/17/2023 Validity: 04/03/2023

Art. 12.- The Superintendence will send to the Central Bank, within a period not greater than ten business days following the deadline established in Article 4 of these Standards, the monthly report on files with information related to insurance policies and bonds, duly processed, in order to generate statistics on financial inclusion.

Sanctions Art. 13.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Law for the Supervision and Regulation of the Financial System.

Transitory Art. 14.- The first submission of the information required in Annex No. 1 of these Standards must be made within the first ten business days of the month of June of the year 2023, with reference to May 31, 2023. The first submission of the information required in Annex No. 2 of these Standards must be made within the first ten business days of the month of August of the year 2023, and must contain information from January 1, 2022 to December 31, 2022. Regarding the Internal Auditor certification referred to in Article 6 of these Standards, the first submission must be made within the first ten business days of the month of August of the year 2023, and must be related to information from January 1, 2022 to December 31, 2022.

Unforeseen Aspects Art. 15.- Aspects not provided for in regulatory matters in these Standards will be resolved by the Central Bank through its Standards Committee.

Validity Art. 16.- These Standards will enter into force from the third day of April of two thousand twenty-three. Modifications: (1) Modifications in Articles 4 and 5, approved by the Central Bank through its Standards Committee, in Session No. CN-10/2025 of December 17, two thousand twenty-five, with validity from January 2, two thousand twenty-six.

Annex No. 1 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 6 of 16 CNBCR-02/2023 NRP-39 TECHNICAL STANDARDS FOR THE SUBMISSION OF INFORMATION BY INSURANCE COMPANIES FOR THE PREPARATION OF INSURANCE ACTIVITY STATISTICS Approval: 03/17/2023 Validity: 04/03/2023

XML FILE STRUCTURE

Below is the structure of the XML data files to be submitted by entities for data corresponding to policies.

File 1. Person Information (persona.xml) No Column Name Description 1.1 document_number Document number of the policyholder or insured. 1.2 document_type Type of identity document of the policyholder or insured (DUI, NIT, Passport, Resident Card). 1.3 customer_number Unique number by which the customer is identified. 1.4 person_type Type of person (natural or legal). 1.5 NIT (which will be required in cases defined by the Tax Administration) Tax Identification Number. (which will be required in cases defined by the Tax Administration). 1.6 Gender Gender of the person. 1.7 Nationality Nationality of the policyholder or insured (Value table will be sent). 1.8 birth_date Birth date or incorporation date of the policyholder or insured. 1.9 first_surname First surname of the policyholder or insured. 1.10 second_surname Second surname of the policyholder or insured. 1.11 married_surname Married surname of the policyholder or insured. 1.12 first_name First name of the policyholder or insured. 1.13 second_name Second name of the policyholder or insured. 1.14 society_name Name of the legal person policyholder or insured.

File 2. Policy Information (poliza.xml) No Column Name Description 2.1 policy_number Policy number. 2.2 policy_type Type of policy. 2.3 operation_type Type of operation (I. Initial and R. Renewal). 2.4 insurance_type Type of insurance. 2.5 massive_marketer_code Registry Seat code granted by the Financial System Superintendence. 2.6 validity_start_date Policy validity start date. 2.7 validity_end_date Policy expiration date. 2.8 sum_insured Value of the sum insured. 2.9 premium_periodicity Periodicity in which the premium is paid. 2.10 premium_value Value of the annual premium. 2.11 covered_risk_description Brief description of covered risks.

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2.12 Premiums_collected Premiums collected in the reported period. 2.13 Reinsurance It will be defined whether the policy has reinsurance or not (1. with Reinsurance and 2. Without Reinsurance). 2.14 premium_value_pending_collection Value of the premium pending collection. 2.15 value_overdue_premiums Value of overdue premiums. 2.16 days_late Days late. 2.17 provision_overdue_premiums Provision for overdue premiums. 2.18 intermediary It will be defined if the policy marketing form is (D.Direct by Office and I.Insurance Intermediary). 2.19 intermediary_code_ssf Registry Seat code granted by the Financial System Superintendence. 2.20 commission_value Value of the commission paid to the Insurance Intermediary in the reported period. 2.21 claims_amount_paid_month Amount of claims paid during the reported month. 2.22 claims_amount_paid Accumulated amount of claims paid.

File 3. Certificate Information (certificado.xml) No Column Name Description 3.1 policy_number Policy number. 3.2 policy_type Type of policy. 3.3 insurance_type Type of insurance. 3.4 certificate_number Certificate number. 3.5 document_number Document number of the insured. 3.6 document_type Type of identity document of the insured. 3.7 Gender Gender of the insured person. 3.8 validity_start_date Policy validity start date. 3.9 validity_end_date Policy expiration date. 3.10 sum_insured Value of the sum insured. 3.11 premium_periodicity Periodicity in which the premium is paid. 3.12 premium_value Value of the annual premium. 3.13 premiums_collected Premiums collected in the reported period. 3.14 premium_value_pending_collection Value of the premium pending collection. 3.15 value_overdue_premiums Value of overdue premiums. 3.16 days_late Days late. 3.17 provision_overdue_premiums Provision for overdue premiums. 3.18 claims_amount_paid_month Amount of claims paid during the reported month by certificates. 3.19 claims_amount_paid Accumulated amount of claims paid by certificates.

Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 8 of 16 CNBCR-02/2023 NRP-39 TECHNICAL STANDARDS FOR THE SUBMISSION OF INFORMATION BY INSURANCE COMPANIES FOR THE PREPARATION OF INSURANCE ACTIVITY STATISTICS Approval: 03/17/2023 Validity: 04/03/2023

File 4. Policy and Person Relationship File (poliza_persona.xml) No Column Name Description 4.1 policy_number Policy number. 4.2 policy_type Type of policy. 4.3 insurance_type Type of insurance. 4.4 document_number Document number of the policyholder or insured. 4.5 document_type Type of identity document of the policyholder or insured. 4.6 role Role of the person (policyholder or insured).

Annex No. 2 Alameda Juan Pablo II, between 15 and 17 Av. Norte, San Salvador, El Salvador. Tel. (503) 2281-8000 www.bcr.gob.sv Page 9 of 16 CNBCR-02/2023 NRP-39 TECHNICAL STANDARDS FOR THE SUBMISSION OF INFORMATION BY INSURANCE COMPANIES FOR THE PREPARATION OF INSURANCE ACTIVITY STATISTICS Approval: 03/17/2023 Validity: 04/03/2023

XML FILE STRUCTURE

Below is the structure of the XML data files to be submitted by entities for data corresponding to the Insurance Yearbook.

File 1. Acquisition Expenses. Direct Insurance (gastos_adquisicion.xml) No. Column Name Description 1.1 expense_code Expense code. 1.2 expense_amount Expense amount.

File 2. Monthly Report of Direct Insurance for Lines of Damage and Bonds. (inf_mensual_daños_fianzas.xml) No. Column Name Description 2.1 month Month to be reported. 2.2 line_code Line code. 2.3 premium_amount Premium amount. 2.4 refunds_amount Amount of refunds. 2.5 number_claims Number of claims. 2.6 claims_amount Amount of claims.

File 3. Monthly Report of Direct Insurance. Life Insurance (inf_mensual_seguro_personas.xml) No. Column Name Description 3.1 month Month to be reported. 3.2 line_code Line code. 3.3 premium_amount Premium amount. 3.4 refunds_amount Amount of refunds. 3.5 number_claims Number of claims. 3.6 claims_amount Claims amounts. 3.7 endowment_maturity_amount Amount of matured endowments. 3.8 surrenders_paid_cash_amount Amount of surrenders paid in cash. 3.9 surrenders_for_loan_settlement_amount Amount of surrenders to settle loans. 3.10 policy_rehabilitation_amount Amount of policy rehabilitation payments liquidated due to exhaustion of surrender value.

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File 4. Annual Report of Policy and Sum Insured Movement (Direct Insurance), for lines of Personal Accident, Medical - Hospital, and Temporary Decreasing (inf_mov_poliza_accidente_med_hosp_temp.xml) No. Column Name Description 4.1 policy_movement_concept_code Concept code. 4.2 no_personal_accident_policies No. of policies for Personal Accident line. 4.3 no_personal_accident_certificates No. of certificates for Personal Accident line. 4.4 personal_accident_amount Amount for Personal Accident line. 4.5 no_medical_hospital_policies No. of policies for Medical Hospital line. 4.6 no_medical_hospital_certificates No. of certificates for Medical Hospital line. 4.7 medical_hospital_amount Amount for Medical Hospital line. 4.8 no_temporary_decreasing_policies No. of policies for Temporary Decreasing line. 4.9 no_temporary_decreasing_certificates No. of certificates for Temporary Decreasing line. 4.10 temporary_decreasing_amount Amount for Temporary Decreasing line.

File 5. Annual Report of Policy and Sum Insured Movement by Life Line, Individual Plans, and Collective Life (inf_movimiento_poliza_vida.xml) No. Column Name Description 5.1 line_code Line code. 5.2 policy_movement_concept_code Concept code. 5.3 number_policies_in_force No. of policies for Portfolio in Force. 5.4 sum_insured_amount_portfolio_in_force Sum insured amount for Portfolio in Force. 5.5 number_policies_exits_deferrals No. of policies for Exits and Deferrals. 5.6 sum_insured_amount_exits_deferrals Sum insured amount for Exits and Deferrals. 5.7 additional_sum_amount Amount of Additional Sum by dividends or additional benefits. 5.8 number_double_indemnity_policies No. of policies for Double Indemnity. 5.9 double_indemnity_amount Amount of Double Indemnity policies. 5.10 number_contracts_portfolio_in_force No. contracts for Portfolio in Force. 5.11 number_certificates_portfolio_in_force No. Certificates for Portfolio in Force. 5.12 amount_portfolio_in_force Amount for Portfolio in Force. 5.13 number_contracts_double_indemnity No. contracts for Double Indemnity. 5.14 number_certificates_double_indemnity No. Certificates for Double Indemnity.

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