The Argentine Superintendence of Insurance (SSN), the country’s insurance regulator, has amended its reinsurance framework lifting barriers to foreign reinsurers looking to operate in the region and opening the market to international firms.
The regulatory changes will allow foreign reinsurance firms to take on more risks and dispose of the requirement for foreign insurers to register for permanent representation with Argentina’s Public Registry of Commerce.
Along with these concessions, the asset requirement for reinsurers wishing to operate in the Argentine market has increased from US$30 million to US$100 million. The firms are also required to submit proof of credit ratings for the past three years.
The development will be beneficial for re/insurers operating in Latin America, as it has paved the way for increased entry of foreign re/insurance capital that can revitalize the market with a wider product selection and increased insurance penetration.
Analysts have said that amid a wave of economic protectionism, this move by the Argentinian regulator in the opposite direction is a positive development that will boost the insurance industry’s growth in spite of geopolitical concerns.
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