The Superintendency of Banking, Insurance and AFP (SBS) updated the regulation of the catastrophic risk reserve for insurance and reinsurance companies established in the country. Insurers will have until 2023 to implement the new rule.
The provision made official through Resolution No. 03661-2021, published in the official newspaper El Peruano, aims to strengthen the capacity of the insurance system to face catastrophic events and ensure the prompt attention and payment of claims for the benefit of the insured.
The technical bases of the new regulation were prepared by the Peruvian-Japanese Center for Seismic Research and Disaster Mitigation (CISMID) of the National University of Engineering. This will allow insurance companies to have the financial strength necessary to face the losses caused by earthquakes and tsunamis.
The regulation provides that insurers have until March 30, 2022 to submit to the SBS an adaptation plan approved by its board of directors. Along the same lines, they will have until June 30, 2023 to adapt and implement the new provisions of the regulation.
The SBS will evaluate the extension of the term only in the case of companies that register excess equity that allows to partially or totally cover the amount of the required technical reserve. The extension of the adaptation period will not exceed June 30, 2024.
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