A new law is being prepared that will change the capital requirements and other requirements for granting licenses to reinsurers operating in the country.
Monday, January 9, 2017
The proposal by the Insurance and Reinsurance Superintendency of Panama was revealed weeks after the intervention was ordered into the reinsurer Istmo Compañía de Reaseguros.This process was not the only one in 2016, as the company Seguros Confianza was also taken over in September.
The head of the Superintendence, José Joaquín Riesen, told Prensa.com that"... In addition the agreement was also updated for foreign reinsurers thatare registered to operate in the country."We want to ensure that the regulator of originis applying international standards, corporate governance ... Moving from the simpleregistration process we have today to criteria based on international standardsto ensure that the reinsurers who are providing backing have a level equal to or higher than that required locally. "
"...This year, the regulator also intends to introduce changes in health policies to make them more transparent.What is sought is for them to be clear to consumers and that the "usual and customary" prices for medical services -used by insurers as a reference for paying claims and which they themselves establish-., is known by the client "
It has been announced that three insurers with the largest share in the market have requested authorization from the regulator to make adjustments of up to 12% on premiums for health insurance policies.
The Superintendent of Insurance and Reinsurance, José Joaquín Riesen, told Prensa.com that three companies asked to be able to increase premiums for health policies, arguing that the costs of medical services have increased by at least 10% in recent years, while premiums, deductibles and coinsurance have remained in the same price ranges.
With the amendment of Law 63 of 1996 it is intended that international reinsurers will invest in the country making it a hub for the whole continent.
According to Luis Della Togna, Superintendent of Insurance and Reinsurance of Panama, a draft has been drawn up which amends the law and thereby strengthens supervision, control and regulation of the sector.
The canal country aims to become an International Centre for Reinsurance, for which it will need to make the place more competitive and gain more acceptance in global markets.
According to an article in Capital.com.pa "The Panamanian insurance market is experiencing a period of readjustment in all its regulatory apparatus, a new law governing the sector has already been implemented, and now they are working on draft bills to regulate the sector and one for reinsurance brokers. "