Mexico: Mandatory registration for offshore coverholders
Lloyd’s has published guidance on how to comply with the registration requirements for coverholders binding Mexican business on a cross-border basis.
Lloyd’s coverholders based outside of Mexico must be registered with the regulator -- the Comisión Nacional de Seguros y Fianzas (“CNSF”) – in order to bind Mexican reinsurance business.
The CNSF informs Lloyd’s that it may take up to six months from application for coverholders to appear on the register. It is Lloyd’s understanding, however, that coverholders will be able to bind business as soon as the registration documents have been submitted to the regulator. The registration is non-transferable and will be valid for the duration of the coverholder’s binding authority.
Lloyd’s is required to submit applications for registration to the CNSF on behalf of coverholders. Coverholders intending to seek registration are encouraged to visit the Lloyd’s Mexico coverholder registration webpage where they will find further information and practical guidance on how to begin the registration process. Coverholders may also wish to refer to Lloyd’s Market Bulletin Y5073 which provides a summary of the background and scope of the requirement. Lloyd’s has already processed a number of registrations on behalf of coverholders.