Please check or fill in the figures in 2001, if available (if not, give us the most recent figures showing which year it is). If necessary, please add notes. The figures in blue are mostly from the ASSAL Yearbook.
Table 1 Direct Premiums Written (2001)
Country / Direct Premiums Written million US$ / Density US$ per Inhabitant (Direct Premiums /Population) / Penetration % (Direct Premiums/GDP) / Life Insurance Share %Life / Non-life(1) / Total / Life / Non-life / Total / Life / Non-life / Total
Argentina / 1848 / 5007 / 6855 / 49.30 / 133.59 / 182.90 / 0.62 / 1.68 / 2.30 / 26.96
Bolivia / 33 / 65 / 98 / 4.02 / 7.92 / 11.95 / 0.40 / 0.78 / 1.19 / 33.67
Brazil / 1797 / 8495 / 10293 / 10.43 / 49.28 / 59.71 / 0.36 / 1.69 / 2.04 / 17.46
Chile / 2043 / 764 / 2808 / 132.70 / 49.64 / 182.36 / 3.08 / 1.15 / 4.23 / 42.77
Colombia / 821 / 1146 / 1968 / 19.40 / 27.08 / 46.51 / 0.98 / 1.37 / 2.36 / 41.72
Costa Rica (2000) / 37 / 277 / 314 / 10.22 / 76.53 / 86.76 / 0.24 / 1.80 / 2.04 / 11.78
Cuba / 0 / 209 / 209 / 0.00 / 18.73 / 18.73 / 0.00 / 1.27 / 1.27 / 0.00
Dominican Republic / 42 / 415 / 457 / 4.79 / 47.65 / 52.44 / 0.07 / 0.7 / 0.77 / 9.1
Ecuador(1999) / 13 / 100 / 113 / 1.09 / 8.43 / 9.53 / 0.09 / 0.73 / 0.83 / 11.50
El Salvador / 104 / 135 / 239 / 16.30 / 21.15 / 37.46 / 0.76 / 0.98 / 1.75 / 43.51
Guatemala / 41 / 179 / 221 / 3.51 / 15.95 / 18.96 / 0.20 / 0.87 / 1.08 / 18.55
Honduras / 43 / 79 / 122 / 6.32 / 11.61 / 17.93 / 0.69 / 1.28 / 1.98 / 35.25
Mexico / 6534 / 5058 / 11592 / 66.19 / 51.24 / 117.44 / 1.05 / 0.81 / 1.87 / 56.37
Nicaragua / 11 / 36 / 47 / 2.10 / 6.89 / 9.00 / 0.23 / 0.76 / 1.00 / 23.40
Panama / 166 / 193 / 360 / 58.34 / 67.72 / 126.06 / 2.26 / 2.62 / 4.88 / 46.27
Paraguay / 0(2) / 65 / 65 / 0.00? / 13.13 / 13.13 / 0.00? / 0.82 / 0.82 / 0.00?
Peru / 216 / 354 / 571 / 8.21 / 13.45 / 21.71 / 0.37 / 0.60 / 0.98 / 37.83
Uruguay / 119 / 198 / 318 / 35.46 / 59.00 / 94.77 / 0.64 / 1.06 / 1.71 / 37.42
Venezuela / 62 / 2672 / 2735 / 2.51 / 108.48 / 111.04 / 0.05 / 2.29 / 2.35 / 2.27
OECD average (1998) / - / - / - / 1212 / 854 / 2067 / 5.32 / 3.75 / 9.06 / 54.34(3)
Notes: (1) Including surety
(2) US$ ---
(3) Total gross premiums basis
Please check or fill in the figures in the end of 2001. Please make sure the sum of the figures in the first 4 columns becomes the figure in the last column (we put “?” if not). Please note the total number exclude the branches of foreign reinsurance companies. If necessary, please add notes.
Table 2 Number of Insurance Companies
(life/non-life/composite/reinsuranceexcept branches of foreign reinsurance companies)
Argentina / 88 / 62 / 60 / 4 / 214
Bolivia / 8 / 11 / 0 / 0 / 15?
Brazil / 10 / 16 / 93 / 1 / 120?
Chile / 32 / 22 / 0 / 2 / 56
Colombia / 23 / 30 / 0 / 1 / 46?
Costa Rica / 0 / 0 / 1 / 0 / 1
Cuba / 6(3) / 3 / 0 / 0 / 9
Dominican Republic / 0 / 2 / 33 / 3 / 38?
Ecuador (1999) / 5 / 11 / 26 / 2 / 42?
El Salvador / 0 / 3 / 15 / 0 / 18
Guatemala / 0 / 3 / 15 / 0 / 30?
Honduras / 1 / 1 / 10 / 0 / 12
Mexico / 18 / 12 / 37 / 3 / 87?
Nicaragua / 0 / 0 / 5 / 0 / 5
Panama / 4 / 1 / 14 / 0 / 19
Paraguay / 0 / 41 / 2 / 0 / 37?
Peru / 7 / 5 / 4 / 0 / 16
Uruguay / 1 / 3 / 13 / 0 / 17
Venezuela / 2 / 14 / 35 / 4 / 55
Notes
(1) Composite means insurance companies which concurrently place both life and non-life business.
(2) Reinsurance means insurance companies which exclusively underwrite reinsurance. The figures donot include the branches of foreign reinsurance companies.
(3) There are 6 branches of foreign life insurance companies, which only fulfil contractual obligations undertaken before1963.
(4) There are 2 branches of foreign reinsurance specialists, which at present do not carry out operations.
Please check or fill in the figures in the end of 2001. Please make sure the sum of the figures in the first 4 columns becomes the figure in the last column (we put “?” if not). If necessary, please add notes.
Table 3 Number of Insurance Companies
(State-owned/national private/foreign-controlled/branches)
(Direct Insurance) / Branches and Agencies of Foreign Companies
(Reinsurance) / Total
Argentina / 3 / 45 / 89 / 6 / 107 / 321?
Bolivia / 0 / 18 / 0 / 1 / 0 / 15?
Brazil / 5 / 68 / 46 / 1 / 0 / 120?
Chile / 0 / 27 / 27 / 0 / 134 / 188
Colombia / 4 / 36 / 14 / 0 / 0 / 46
Costa Rica / 1 / 0 / 0 / 0 / 0 / 1
Cuba / 1 / 2 / 0 / 6(4) / 2(4) / 11
Dominican Republic / 1 / 32 / 5 / 0 / 0? / 41?
Ecuador
(1999) / 0 / 40 / 0 / 4 / 0 / 42?
El Salvador / 0 / 14 / 3 / 1 / 18 / 36
Guatemala / 1 / 14 / 3 / 0 / 0 / 30?
Honduras / 0 / 10 / 0 / 2 / 0 / 12
Mexico / 2 / 35 / 33 / 0 / 215 / 302?
Nicaragua / 1 / 4 / 0 / 0 / 0 / 5
Panama / 0 / 14 / 0 / 5 / 13 / 34?
Paraguay / 0 / 40 / 2 / 1 / 25 / 62?
Peru / 0 / 8 / 8 / 0 / 32 / 48
Uruguay / 1 / 3 / 13 / 0 / 47? / 64?
Venezuela / 1 / 39 / 11 / 0 / 0 / 55?
Notes
(1) State-owned companies means companies whose majority (50% or more) of the controlling powers belongs to the State.
(2) National private companies means companies whose majority (50% or more) of the controlling powers belongs to national entities excluding State-owned companies.
(3) Foreign-controlled companies means companies whose majority (50% or more) of the controlling powers does not belong to national entities excluding branches and agencies of foreign companies.
(4) There are 6 branches of foreign life insurance companies fulfilling only contractual obligations undertaken before 1963 and 2 branches of foreign reinsurance specialists which at present do not carry out operations.
Please check or fill in the figures in (the end of, if available) 2001. If the figures are not available, fill in the most recent figures available, or keep the figures in the last survey showing the figures in 1998. If necessary, please add notes.
Table 4 Number of Employees of Insurance Companies
Country / Number of employees / Premium/employee in US$
Argentina / 28533 / 261 334
Bolivia / 900 / 83 843
Brazil / 38605 / 271036
Chile (1998) / 10 844 / 227 868
Colombia / 12 804 / 99 473
Costa Rica / 2 390 / 101 555
Cuba / 921 / 178 837
Dominican Republic / 2 450 / 5.36??
Ecuador / 2 435 / 101 896
El Salvador (2000) / 1 115 / 251 814
Guatemala / 1 250 / 138 880
Honduras / 1 762 / 50 876
Mexico / 24 962 / 461 072
Nicaragua / 367 / 86 784
Panama / 1 649 / 218 932
Paraguay / 1 600 / 67 188
Peru / 3289 / 176 818
Uruguay / 2 087 / 152 616
Venezuela / n.a. / n.a.
OECD average (1998) / - / 601 742
Please check or fill in the figures in (the end of, if available) 2001. If necessary, please add notes.
Table 5 Investments by Direct Insurance Companies: Percentages by Classes of Investment (2001)
Argentina
Life % / Non-life % / Total %Real Estate / 3.82 / 6.12 / 5.69
Shares / 14.38 / 6.67 / 8.12
Bonds / 42.07 / 38.39 / 39.08
Loans / 1.55 / 1.48 / 1.49
Other Investments / 38.18 / 47.34 / 45.62
Total / 100.00 / 100.00 / 100.00
Bolivia
Life % / Non-life % / Total %Real Estate / 0.00 / 38.31 / 37.06
Shares / 0.29 / 3.41 / 3.31
Bonds / 8.48 / 2.32 / 2.52
Loans / 0.00 / 1.82 / 1.76
Other Investments / 91.24 / 54.14 / 55.34
Total / 100.00 / 100.00 / 100.00
Brazil (*)
Life % / Non-life % / Total %Real Estate / n.a / n.a / 2.17
Shares / n.a / n.a / 6.29
Bonds / n.a / n.a / 35.95
Loans / n.a / n.a / 55.59
Other Investments / n.a / n.a / 0.00
Total / 100.00 / 100.00 / 100.00
* These figures indicate only assets corresponding to technical provisions. Because companies conducting life business are also allowed to sell private pension products, these figures include assets corresponding to technical provisions for private pensions.
Please check or fill in the figures in (the end of, if available) 2001. If necessary, please add notes.
Table 5Investments by Direct Insurance Companies: Percentages by Classes of Investment (2001) (continued)
Chile
Life % / Non-life % / Total %Real Estate / 7.30 / 12.50 / 7.40
Shares / 3.10 / 2.40 / 3.10
Bonds / 28.90 / 18.50 / 28.70
Loans / 0.00 / 0.00 / 0.00
Other Investments / 60.50 / 66.60 / 60.80
Total / 100.00 / 100.00 / 100.00
Columbia
Life % / Non-life % / Total %Real Estate / 0.00 / 0.00 / 0.00
Shares / 33.89 / 42.06 / 38.34
Bonds / 15.93 / 8.89 / 12.10
Loans / 0.00 / 0.00 / 0.00
Other Investments / 50.17 / 49.04 / 49.56
Total / 100.00 / 100.00 / 100.00
Costa Rica
Life % / Non-life % / Total %Real Estate / n.a / n.a / n.a
Shares / n.a / n.a / n.a
Bonds / n.a / n.a / n.a
Loans / n.a / n.a / n.a
Other Investments / n.a / n.a / n.a
Total / 100.00 / 100.00 / 100.00
Please check or fill in the figures in (the end of, if available) 2001. If necessary, please add notes.
Table 5 Investments by Direct Insurance Companies: Percentages by Classes of Investment (2001) (continued)
Cuba
Life % / Non-life % / Total %Real Estate / 0.00 / 0.00 / 0.00
Shares / 0.00 / 52.00 / 52.00
Bonds / 0.00 / 0.00 / 0.00
Loans / 0.00 / 0.00 / 0.00
Other Investments / 0.00 / 48.00 / 48.00
Total / 0.00(*) / 100.00 / 100.00
(*) Life operation does not exist in this country.
Dominican Republic
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / 32.40
Shares / n.a. / n.a. / 10.30
Bonds / n.a. / n.a. / 0.00
Loans / n.a. / n.a. / 1.30
Other Investments / n.a. / n.a. / 56.00
Total / 100.00 / 100.00 / 100.00
Ecuador
Life % / Non-life % / Total %Real Estate / 14.04 / 32.31 / 29.27
Shares / 3.31 / 10.45 / 9.26
Bonds / 79.07 / 57.18 / 60.83
Loans / 3.58 / 0.05 / 0.64
Other Investments / 0.00 / 0.00 / 0.00
Total / 100.00 / 100.00 / 100.00
El Salvador*
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / 3.9
Shares / n.a. / n.a. / 38.2
Bonds / n.a. / n.a. / 7.88
Loans / n.a. / n.a. / 21.2
Other Investments / n.a. / n.a. / 36.8
Total / 100.00 / 100.00 / 100.00
*The majority of insurers are composite companies. The lines of specialization differ in El Salvador.
Insurers generally specialize between personal and general insurers. Personal insurer operate the lines of life, accident.
They may also specialize in reinsurance and guarantees. In 1998 one company specialized in personal.
Please check or fill in the figures in (the end of, if available) 2001. If necessary, please add notes.
Table 5Investments by Direct Insurance Companies: Percentages by Classes of Investment (2001) (continued)
Guatemala
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / 8.99
Shares / n.a. / n.a. / 5.10
Bonds / n.a. / n.a. / 34.45
Loans / n.a. / n.a. / 16.47
Other Investments / n.a. / n.a. / 34.99
Total / 100.00 / 100.00 / 100.00
Honduras
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / 8.89
Shares / n.a. / n.a. / 8.89
Bonds / n.a. / n.a. / 9.48
Loans / n.a. / n.a. / 26.21
Other Investments / n.a. / n.a. / 46.53
Total / 100.00 / 100.00 / 100.00
Mexico
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / 7.09
Shares / n.a. / n.a. / 29.06
Bonds / n.a. / n.a. / 58.65
Loans / n.a. / n.a. / 1.85
Other Investments / n.a. / n.a. / 3.35
Total / 100.00 / 100.00 / 100.00
Please check or fill in the figures in (the end of, if available) 2001. If necessary, please add notes.
Table 5Investments by Direct Insurance Companies: Percentages by Classes of Investment (2001) (continued)
Nicaragua
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / 2.0
Shares / n.a. / n.a. / 32.5
Bonds / n.a. / n.a. / 42.3
Loans / n.a. / n.a. / 15.5
Other Investments / n.a. / n.a. / 7.7
Total / 100.00 / 100.00 / 100.00
Panama
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / -
Shares / n.a. / n.a. / 33.00
Bonds / n.a. / n.a. / 16.00
Loans / n.a. / n.a. / 5.00
Other Investments / n.a. / n.a. / 46.00
Total / 100.00 / 100.00 / 100.00
Paraguay
Life % / Non-life % / Total %Real Estate / 85.64 / 41.26 / 48.93
Shares / 0.00 / 0.77 / 0.63
Bonds / 0.00 / 0.00 / 0.00
Loans / 0.00 / 1.74 / 1.44
Other Investments / 14.36 / 56.24 / 49.00
Total / 100.00 / 100.00 / 100.00
Please check or fill in the figures in (the end of, if available) 2001. If necessary, please add notes.
Table 5Investments by Direct Insurance Companies: Percentages by Classes of Investment (2001) (continued)
Peru (*)
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / 8.22
Listed Shares and Mutual Funds / n.a. / n.a. / 17.41
Rated Corporate Bonds / n.a. / n.a. / 12.72
Deposits and Payments of any nature / n.a. / n.a. / 17.42
Other Investments / n.a. / n.a. / 44.23
Total / 100.00 / 100.00 / 100.00
(*) For this country, only the following classification is available.
Uruguay
Life % / Non-life % / Total %Real Estate / n.a. / n.a. / 18.56
Shares / n.a. / n.a. / 0.00
Bonds / n.a. / n.a. / 60.72
Loans / n.a. / n.a. / 2.75
Other Investments / n.a. / n.a. / 17.97
Total / 100.00 / 100.00 / 100.00
Venezuela
Life % / Non-life % / Total %Real Estate / 0.00 / 28.12 / 28.02
Shares / 19.40 / 14.16 / 14.18
Bonds / 39.92 / 45.45 / 45.43
Loans / 18.48 / 1.20 / 1.26
Other Investments / 22.19 / 11.07 / 11.10
Total / 100.00 / 100.00 / 100.00
Table 6 Investments by Direct Insurance Companies: Percentages by Classes of Investment : Examples of the Four Big OECD Insurance Markets (1998)
United States
Life % / Non-life %Real Estate / 1.47 / 1.26
Shares / 6.63 / 30.51
Bonds / 70.04 / 59.46
Loans / 16.73 / 0.23
Other Investments / 5.14 / 8.54
Total / 100.00 / 100.00
Japan
Life % / Non-life %Real Estate / 5.07 / 5.97
Shares / 17.21 / 19.60
Bonds / 32.82 / 29.51
Loans / 30.83 / 20.71
Other Investments (*) / 14.07 / 24.21
Total / 100.00 / 100.00
(*) "Foreign Shares and Bonds" are included in "Other Investments".
Germany
Life % / Non-life %Real Estate / 3.72 / 4.42
Shares / 6.61 / 13.02
Bonds / 11.13 / 14.47
Loans / 59.01 / 46.95
Other Investments / 19.52 / 21.14
Total / 100.00 / 100.00
United Kingdom
Life % / Non-life %Real Estate / 8.07 / 2.29
Shares / 52.10 / 24.47
Bonds / 36.76 / 63.76
Loans / 2.48 / 6.28
Other Investments / 0.59 / 3.21
Total / 100.00 / 100.00
Please fill in the blank columns and update the following information. As for number of employees, fill in the figures in the end of 2001. Information without the parentheses “( )” is about the division in charge of insurance and without the parentheses is about the whole organisation. If necessary, please add notes.
Table 7 Insurance Supervisory Authority
Country / Name of Supervisory Body(and role, if more than one body) / Scope of Supervision(1) / Financed by: / Number of Employees(1)
(2001)
Banks / Securities / Pensions
Argentina / National Insurance Superintendence(Superintendencia de Seguros de la Nacíon) / N / N / N / State budget(2) / 313
Bolivia / Insurance Intendence,Superintendence of Pensions, Securities and Insurance (Intendencia de Seguros, Superintendencia de Pensions, Valores y Seguros (SPVS)) / N / N (Y) / N (Y) / Insurers / 33
Brazil / Superintendency of Private Insurance(3) (Superintendência de Seguros Privados) / N / N / Y(4) / Insurers / 268
Chile / Superintendence of Securities and Insurance(Superintendencia de Valores y Seguros) / N / Y / N / State budget / 47
(214)
Colombia / Banking Superintendence (Superintendencia de Bancaria) / Y / N / Y / Supervised entities / 82
(800)
Costa Rica / None(5)
Cuba / Insurance Superintendence (Superintendencia de Seguros) / N / N / N / State budget and insurers / 16
Dominican Republic / Superintendence of Insurance (Superintendencia de Seguros) / N / Y / N / Insurers / 350
Ecuador / National Intendence of Insurance, Superintendency of Banks and Insurance
(Intendencia Nacional de Seguros, Superintendencia de Bancos y Seguros) / N (Y) / N / N / Insurers / 66
El Salvador / Insurance Division, Superintendence of Financial System
(División de Seguros, Superintendencia de Sistema Financiero) / Y / N / N / Central Bank and banks(7) / 17(8) ?
Guatemala / Insurance Department, Banking Superintendence (Superintendencia de Bancos) / Y / N / N / Central Bank and supervised institutions / 32
Honduras / Superintendence of Insurance and Pensions, National Commission of Banking and Insurance (Superintendentia de Seguros y Pensiones, Comisión Nacional de Bancos y Seguros (CNBS)) / N (Y) / N (Y) / Y / 50% by Central Bank and 50% by supervised institutions / 18(9)
Mexico / Insurance and Sureties National Commission (Comisíon National de Seguros y Fianzas) / N / N / N(11) / Insurers and insurance intermediaries / 381
Nicaragua / Insurance Commissioner's Office, Superintendent of Banking and Other Financial Institutions (Intendente de Seguros, Superintendencia de Bancos y de Otras Instituciones Financieras) / N (Y) / N (Y) / N / 25% by Central Bank and 75% by supervised institutions / 6
Panama / Superintendence of Insurance and Reinsurance of Panama(Superintendencia de Seguros y Reaseguros de Panamá (SSRP)) / N / N / Y(4) / State budget, insurers and insurance brokers / 39
Paraguay / Insurance Superintendence (Superintendencia de Seguros) / N / N / N / Central Bank / 53
Peru / Deputy Superintendence of Insurance, Superintendence of Banking and Insurance
(Superintendencia Adjunta de Seguros, Superintendencia de Banca y Seguros (SBS)) / N (Y) / N / N (Y) / Supervised institutions / 38
(350)
Uruguay / Superintendence of Insurance and Reinsurance (Superintendencia de Seguros y Reaseguros) / N / N / N / Central Bank / 14
Venezuela / Superintendence of Insurance (Superintendencia de Seguros) / N / N / N / Insurersand insurance intermediaries / 163
Notes:
(1) The information without parentheses is for the department responsible for insurance. The information in parentheses isfor the entire organisation.
(2) However, it is stipulated by the law that the National Insurance Superintendence is a decentralised organisation with financial autarky.
(3) The business license itself is granted by the Ministry of Finance, after the Superintendency of Private Insurance (SUSEP) analyses licensing requirements and makes a proposal to (or not to) grant a license. The National Council of Private Insurance (Conselho Nacional de Seguros Privados (CNSP)) is an insurance regulatory body. The CNSP consists of the Minister of Finance, the SUSEP's Superintendent, representatives of the Ministry of Justice, the Ministry of Social Security and Assistance, the Central Bank of Brazil and the Brazilian Federal Securities and Exchange Commission.
(4) Only pensions productsoffered by insurance companies, such as private open pension funds in Brazil.
(5) Until now insurance business is monopolised by the State entity, “Institute Nacional de Seguros”. Therefore, there is at present no insurance supervisory body. However, there is a legislative project to create the Superintendency for Insurance Entities, Bonds, Guarantees and Pension Funds.
(7) At present insurance companies do not need to contribute.
(8) The Insurance Division has 14 on-site supervisors. In addition, there are 4 financial analysts who perform off-site supervision and 2 legal experts who assist supervisors during on-site inspection.
(11) The Insurance and Surety National Commission doesn’t supervise pension funds, instead it is in charge of supervising annuities based upon such pension funds.
Please fill in the vacant columns and update information. Please also provide the range of minimum capital. If necessary, please add notes.
Table 8 Licensing Requirements
Country / Legal Form(1) / Minimum Capital(Determinants and/or Range of Minimum Capital) / Business Plan (Time Horizon to be covered) / Fitness and Propriety of Management / Others
Stock Company / Co-operative / Mutual Society
Argentina / Y / Y / Y / Y / Y(3 years) / "suitability of activity"(5)
Bolivia / Y / Y / Y / Y (Uniform amount for all companies) / Technical, economic and feasibility study
Brazil / Y / Y(6) / N / Y (Lines and the States where it operates) / Y / Y(7)
Chile / Y / N / N / Y (Lines. Index linked (8).
UF 90,000 (US$ 2.4 million) for insurance
UF 120,000 (US$ 3.2 million) for reinsurance) (8-1) (8-2) / N / Y
Colombia / Y / Y / N / Y (Lines. Index linked) (8-1) / Y (5 years) / Y / Feasibility study
Costa Rica(9) / - / - / -
Cuba / Y / N / Y / Y(Lines) / Y (3-5 years(12) )
Dominican Republic / Y / N / N / US$ 500,000 / 1, 5 and 10 years / N
Ecuador / Y / N / N / Y (Lines. Index linked) / Feasibility study
El Salvador / Y / N / N / Y (Lines) (8-1) (8-2) / Y (10 years) / Y (for directors)
Guatemala / Y / N / N / Y (Lines.
Q$ 3 million (US$ 400, 000) for life or non-life
Q $ 2 million (US$ 250,000) for reinsurance
Additional 25 % is necessary for first five years) / Y (5 years) / Y / Feasibility Study
Honduras / Y / N / N / Y (Lines.
Minimum capital stipulated in the law is US $26,700.) (11) / Y (5 years) / Economic needs test
Mexico / Y / N / Y / Y (Lines. Index linked (12) ) / Y(3 years(13)) / Y / Technical operation program(14)
Nicaragua / Y / N / N / Y(Lines.
C$ 10 million (US$ 700,000) for life or non-life
C$ 17 million (US$ 1.2 million) for composite ) / Y(not specified. 3-5 years in practice) / Y / - the names and addresses of actuaries
-economic needs test(15)
Panama / Y / N / N / US (= balboas) $ 2,000,000 / Y (15-30 years (5-10 years for feasibility study)) / Y / Feasibility study(16)
Paraguay / Y(Lines)
Peru / Y / N / N / Y (Lines. Index linked (17) ) / Y / Feasibility study(18)
Uruguay / Y / N / N(19) / Y(Lines
US$ 0.5 million for life or non-life, US$ 2 million for composite, US 5.5 million for reinsurance ) (8-1) / Y(at least 3 years in practice) / Y(7)
Venezuela / Y / N / N / Y(Lines
100,000 tributary units for life or non-life
200,000 tributary units for composite) / financial-economic study(20)
economic needs test(21)
the majority of the board of directors must be Venezuelans resident in Venezuela
at least 50% of the executive employees (vice-presidents, directors, managers, assistant managers, etc.) must be Venezuelans resident in Venezuela
Notes : Y: Yes N: NoM: Yes to managementO: Yes to owners
(1) Excluding branches of foreign insurers. Stock company is “Sociedad Anónima” (“Compañía Accionista” in Cuba and “Companhia/Sociedade Anônima” in Brazil), Co-operative is “Cooperativa” and Mutual Society is “Seguro Mutuo” or “Sociedade Mutualista” in Spanish or Portuguese respectively.
(5) The suitability of an applicant's activity in the insurance market is a condition to grant a license. It is explained that there have actually been no cases where the "excessive number of already existing insurance companies" was an argument to reject an application, although the law does not prohibit it.
(6) Only for specialised agricultural or health insurance companies.
(7) Owners are also required to be fit and proper.
(8) The amount of the minimum capital is stipulated by using monetary unit. In Chile, the government adjusts this every day based on the consumer price index.
(8-1) Solvency margin requirements are also considered.
(8-2) Debt-to-equity ratio is also considered.
(9) In this country, insurance business is monopolised by the State entity. Therefore, there exists no licensing procedure which authorises the establishment of new insurance companies.
(10) In practice, it covers the first three to five years, although no specific time horizon is stipulated by the law and regulations.
(11) When granting a license, however, other factors are considered, such as the type of operations to be carried out, average capital of existing insurance companies that have similar size, objectives, etc. The most recent insurance companies that have been authorised have initial capital of approximately US$1.0 million.
(12) In Mexico, the value of the unit is disclosed by the Central Bank.
(13) In the case of the insurance companies specialised in pensions derived from the social security laws; the proposed business plan should be for the next ten years.
(14) It is technical and financial results projection for the first three years, including sales by lines of business, expected losses, reinsurance, investment return, etc.
(15) An applicant must justify the economic benefit to the country and/or insurance industry. Any other information may be requested in order to determine the economic need and financial success of an applicant.
(16) A feasibility study should include market analysis and the projection of an applicant in the short, medium and long term.
(17) The amount of the minimum capital is updated quarterly by using the wholesale price index.
(18) No time horizon is stipulated, but usually it covers the first five years.
(19) Since 1994, the new establishment of mutual societies is not allowed.
(20) A financial-economic study should justify the establishment of a new enterprise.
(21) Economic needs test is one of the factors taken into account during the licensing procedure. Application can be refused without any obligation on the part of the authority to indicate any reasons for such a refusal.
Please fill in the vacant columns and update information. If necessary, please add notes.
Table 9 Licensing: Market Access
Country / Application of Economic Needs Test / Establishment by Foreign InsurersAdmissibility of Wholly- owned Subsidiaries / Admissibility of Joint Ventures (maximum limit of foreign participation) / Admissibility of Branches
Argentina(1) / Y(2) / Y / Y (without the maximum limit) / Y
Bolivia(3) / Y / Y / Y / Y
Brazil / N / N / Y (50%and 1/3 of voting stock) / N(4)
Chile(5) / Y / Y / Y (without the maximum limit) / N
Colombia(6) / Y / Y / Y (without the maximum limit) / N
Costa Rica(7)(8) / - / N / N / N
Cuba / N / N(9) / Y(9) / Y
Dominican Republic / - / N? / N / Y
Ecuador(10) / - / Y / Y (without the maximum limit) / Y
El Salvador(8) / - / Y(11) / Y(11) (without the maximum limit) / N(12)
Guatemala(13) / - / N(14) / Y(14) / N
Honduras(15) / Y / N(16) / Y(16) (40%) / Y
Mexico / N / N(17) / Y(17) (49% 40%?) / N
Nicaragua / Y(18) / Y / Y (without the maximum limit) / N
Panama / N / Y / Y (without the maximum limit) / Y
Paraguay / N / Y / Y (without the maximum limit) / Y
Peru / N / Y / Y (40%?) / Y
Uruguay / N / Y / Y (without the maximum limit) / N
Venezuela / Y(19) / Y / Y (without the maximum limit) / N
Notes:Y: Yes N: No
(1) According to the WTO commitments of this country, authorisation of the establishment of new entities is suspended for both direct insurance and reinsurance services.
(2) The suitability of an applicant's activity in the insurance market is a condition to grant a license. It is explained by the National Insurance Superintendence that actually there have been no cases where the excessive number of already existing insurers was an argument to reject an application although the law does not prohibit it.
(3) According to the WTO commitments, this country applies an economic needs test. The establishment of agencies and representative offices are prohibited in this country, while the establishment of subsidiaries and branches is allowed.