Insurance Superintendence Issues Resolutions Applicable To Reinsurers And Reinsurance Brokers

• Resolution SS.SG No. 213/17 regarding "Regulations to enroll and renew the registration of reinsurers at the Insurance Superintendence's registry" nbsp;

On December 28, the Central Bank of Paraguay issued Resolution SS.SG. No. 213/17 regarding "Regulations to enroll and renew the registration of reinsurers at the Insurance Superintendence's registry", that updates and set forth new rulings to enroll and renew the registrations of foreign reinsurance companies before the Insurance Superintendence's registry.

Regarding the above, Resolution 213 now establishes the obligation of foreign reinsurers to submit all foreign documents dully legalized before the Paraguayan consulate or apostilled (Art. 11).

Additionally, Resolution 213 sets forth that only foreign reinsurers with the required minimum risk rating ("BBB" from Standard & Poor's, "B+" from AM Best, "Baa" from Moody's Investors Service, or "BBB" from Fitch Ratings) can apply for a new registration or renew the currently valid registry, deleting the prior existing option of registering foreign reinsurers that only have a registration in one of the countries members of the Latin-America's Association of Insurance Regulators (Associacion de Supervisores de Seguros de Latinoamerica or ASSAL) plus a determined solvency margin without a minimum risk rating (Arts. 6 and 7).

Moreover, it is also established that the registration can be cancelled by (Art. 8):

not complying with the minimum risk rating required not answering the Insurance Superintendence's requests of information not complying with the obligations established in the subscribed agreements sanctions applied by the regulator but not yet shown in the reinsurer's minimum risk rating On the other hand, Resolution 213 sets forth the obligation of insurance companies to verify the general condition and the risk rating of the reinsurers they work with (Art. 10).

Finally, Resolution 213 also establishes the obligation of reinsurers to notify to the Insurance Superintendence of changes on any aspects, data or requirements set forth in said resolution that occur after the registration is granted (Art. 9).

• Resolution SS.SG. No. 214/17 regarding "Rulings for reinsurance brokers"

On December 28, the Central Bank of Paraguay issued Resolution SS.SG. No. 214/17 of "Rulings for reinsurance brokers" that updates the requirements to enroll and renew the registration of reinsurance brokers before the Central Bank of Paraguay, and sets forth their...