Market spotlight
Trends and prospects
What are the current trends in and future prospects for the insurance and reinsurance markets in your jurisdiction?
During the past few years, the controller (formerly, commissioner) of capital markets, insurance and savings has focused on increasing competition, mainly between pension funds. This important step follows a law, enacted approximately five years ago, which set out that all employees must pay monthly premiums to pension funds in order to secure their future. The opening of new pension funds offering minimum commission and low management fees has increased competition and forced existing pension funds to adapt their rates.
Another major trend has been increased insurance product transparency. The controller has issued various decrees and circulars, under which insurers must disclose monthly information regarding insurance programmes, exclusions, limitations and any updates to rates. The controller may fine and insurer which contravenes these rules, even as much as $1 million.
In order to increase competition between insurers, the controller substantially reduced the capital requirement for digital insurers. In 2018 two new and…
