Lloyd’s announced that it has become the first foreign entity to take advantage of a recent regulatory change in Chile’s insurance practice. Following the signing of a Free Trade Agreement in 2007 “between Chile and the European Union, the South American country’s insurance regulator, Superintendencia de Valores y Seguros (SVS), enacted a new regulation relating to marine, aviation, and transportation (MAT) insurance business,” said the bulletin. Lloyd’s has received approval under Regulation No.197, to transact direct MAT business in Chile.
Lloyd’s explained that “before the enactment of 197, any Chilean citizen or company was free to buy insurance from a foreign insurer. However, foreign insurers and intermediaries were not allowed to solicit or broke for direct business within Chile. The new ruling enables Lloyd’s to write on a direct basis in Chile all insurance connected directly with international marine transport, international commercial aviation and goods in international transit. Also included are civil liability, vessel and aircraft hull insurance, and cargo insurance. However, loan insurances and civil liability for the transportation of passengers are excluded.”
Chilean authorities designated Lloyd’s as an “approved foreign insurer” and allocated the registration code “AS002,” which Lloyd’s indicated it would need to “be included on all direct MAT placements in the information section on the slip.”
Lloyd’s also noted that Chile has “the most favorable business environment in Latin America according to US think-tank the Heritage Foundation.” The country has been economically stable for “two decades” accompanied by “increasing living standards.”
Lloyd’s described Chile’s economy as “deregulated and stable,” as well as welcoming to foreign investment. It also indicated that “its brokers and syndicates are well-positioned to take advantage of the opportunities presented in the Chile insurance market, which has been the second most dynamic market for Lloyd’s in Latin America producing an annual average premium growth of 8.8 percent. “.
Lloyd’s Market Intelligence has produced a detailed brief on Chile, which managing agents can download on: www.lloyds.com/marketintelligence
Source: Lloyd’s – www.lloyds.com
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