We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn more here.Close Me
Chile: Latin America’s Most Expensive Insured Event Ever? Compliance And Coverage Issues Begin To Emerge As Reinsurers Continue To Estimate Impact Of Chile Earthquake
Even if the insured losses from the Chile earthquake fall in the
mid-range of current estimates of between US$ 2 billion and US$ 8
billion, it will outpace Hurricane Wilma as the most expensive
insured event in Latin America's history, according to a
release by reinsurance broker Cooper Gay.
Individual companies have also continued to release estimates of
their exposure to the earthquake: Flagstone Reinsurance Holdings
(US$ 50 million); Max Capital Group, Ltd. (US $10 to 20 million for
both the earthquake and Xynthia), Platinum Underwriters Holdings
(US$ 85 million from Q1 catastrophes), Validus (US$ 170 million to
270 million from Chile), Hiscox (US$ 100 million from Chile and
Xynthia). Swiss Re and Munich Re had previously released estimates
for exposure to the Chilean earthquake that combined to total over
US$ 1 billion.
Some compliance and coverage issues have also begun to emerge
from Chile as investigation of losses progresses: (1) Chilean law
requires that losses be investigated and estimated by companies or
local registered "liquidators" – any
performance of duties reserved for such licensed professionals by
foreign adjusters may pose regulatory compliance issues; (2)
verification of entitlement to the expanded claim notice period
agreed-to by local insurers for insureds impacted in particular
ways by the earthquake; (3) potential conflicts (and ramifications
thereof) between local insurers' obligations to their insureds
under local law and policies and their duties of cooperation/claims
control under reinsurance agreements; (4) difficulties adjusting
business interruption claims that in some instances will dwarf
property damage; (5) detection of earthquake claims by insureds
with no such optional coverage under their fire insurance policies;
and (6) potential coverage/rescission issues posed by failure to
build up to local code.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
This memorandum addresses Decree No. 7.976 of April 1, 2013, which authorizes the incorporation by Brazil′s executive branch of the Agência Brasileira Gestora de Fundos Garantidores e Garantias S.A., a state-owned company to be organized as a corporation and linked to the Ministry of Finance, as described in our memorandum dated June 1, 2012.
Venezuela remains an enticing and daunting jurisdiction in 2010, as the government continues to intervene in the financial services and other major industries and the insurance industry faces the prospect of a new comprehensive insurance law.
Approximately one-fourth of Latin America’s 569 million residents live on less than $2 per day, and many Latin Americans do not have any type of insurance.
The main purpose of the Bill is to (i) regulate mortgage credit insurance (seguro de crédito a la vivienda) and financial guarantee insurance (seguro de garantía financiera); (ii) transform the legal framework currently applicable to the participation of foreign governments and foreign official entities in the capital stock of Mexican insurance companies.
The Superintendencia de Bancos y Otras Instituciones Financieras (SIBOIF) (Nicaragua), Superintendencia del Sistema Financiero (SSF) (El Salvador) and Superintendencia de Bancos (Superban) (Guatemala) recently released insurance industry results for the first nine months of 2009.
Although all of the Latin American jurisdictions had notable regulatory and market developments in 2008, Chile stands out as particularly significant given the size of the market involved.
On December 26, 2006, the National Private Insurance Council ("Conselho Nacional de Seguros Privados" – CNSP), the government agency responsible for insurance and private pension plan policies in Brazil, issued CNSP Resolution no. 155, establishing more rigorous rules on the minimum capital requirements companies must meet to be authorized to operate as insurers.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
