ANNOUNCEMENT 19 May 2011
In May 2011, the government of Argentina changed the local sourcing requirements for reinsurers.
NUMBER OF INTERVENTIONS
RESOLUCION N? 35.794 (In Spanish) http://www.infoleg.gov.ar/infolegInternet/anexos/180000-184999/182517/norma.htm
On 19 May 2011, the Argentine Insurance regulator (Superintendencia de Seguros) enacted Resolution 35.794. The resolution establishes that the first USD 50'000'000 of any individual risk has to be reinsured reinsurers that are locally based. Additionally, the portion of the risk that exceeds the amount of USD 50'000'000, according to this Resolution, can be offered to local or foreign reinsurers registered as such with the Superintendencia.
Furthermore, under Resolution 35.794, local reinsurers are allowed to retaining 10% of their eligible equity as well as at least 15% of the reinsurance premium ceded to them.
Finally, the new regulatory framework also limits intra-group risk transfers from ceding companies holding a local licence to group companies based abroad at 40% of the annual premium. This limit may be exceeded only if the Superintendencia grants authorization to a ceding company that shows that coverage cannot be obtained through local insurers.