Mexico - Change to Coverholder Notification Requirements
The Mexican regulator (CNSF) has announced that it no longer requires foreign reinsurers to notify them of coverholder appointments, or modifications to, or revocations of, their binding authorities.
The regulator in Mexico, the Comisiòn Nacional de Seguros y Fianzas (CNSF), announced on 12 November 2019 a change to their requirements for details of coverholder arrangements to be notified to them. The change took effect on 1 January 2020 and means that foreign reinsurers such as Lloyd’s are no longer required to notify the CNSF of the appointment of their coverholders nor to notify any modification or revocation of the powers and authorities granted to those coverholders.
This amendment has been published in the Official Gazette of the Federation and cancels the requirements of Chapter 34.2 of the CUSF (Circular Única de Seguros y Fianzas) that required notification.
Who does this change apply to?
Coverholders are no longer required to provide Lloyd’s Mexico with details of their binding authority agreements with syndicates. In turn Lloyd’s Mexico will stop submitting notifications to the CNSF.
What do I need to do next?
Managing agents and brokers are requested to inform their coverholders that the requirement to report this information to Lloyd’s Mexico has ceased.
It should be noted that the regulator may request certain information on an ad hoc basis directly from insurers (cedants) regarding their reinsurance arrangements, and therefore coverholders may receive requests from insurers for information.
Who should I contact?
Any questions regarding this change should be directed to the Lloyd’s Mexico office: