Lloyd’s has become the first foreign entity to take advantage of a recent regulatory change in Chile’s insurance practice, enabling it to further enhance its global reach.
Late 2007, in light of the Free Trade Agreement signed 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. Following this, Lloyd's has been approved, under Regulation No.197, to transact direct MAT business in Chile.
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.
As an ‘approved foreign insurer’ Lloyd’s has been allocated the registration code 'AS002’, which will need to be included on all direct MAT placements in the information section on the slip.
Chile, which has the most favourable business environment in Latin America according to US think-tank the Heritage Foundation, has experienced two decades of economic stability and increasing living standards. Given the country’s deregulated and stable economy and vast encouragement of foreign investment, Lloyd’s believes 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%.
Lloyd’s Market Intelligence has produced a detailed brief on Chile, which managing agents can download on: www.lloyds.com/marketintelligence
