Uruguay: Onshore reinsurance coverholders permitted
The local regulator has confirmed that onshore coverholders may be appointed to bind reinsurance business in Uruguay.
The Uruguayan regulator, the Superintendencia de Servicios Financieros, has confirmed the use of onshore coverholders is allowed in Uruguay, broadening the scope of market access for Lloyd’s market participants. Following this notification and with immediate effect, coverholders can be appointed by Lloyd’s managing agents. In keeping with Lloyd’s existing trading rights in Uruguay, the use of coverholders is allowed for reinsurance business only.
In line with the provisions established in the Insurance and Reinsurance Regulatory Compilation (Recopilación de Normas de Seguros y Reaseguros, RNSR), the following requirements must be met when placing risks via onshore coverholders:
- reinsurance contracts must adopt generally accepted terms and conditions established by international practice;
- the power granted to the local agent must not limit the direct relationship between the local insurer and the foreign reinsurer; and
- the broker must not act simultaneously as the coverholder in the same placement.
Further information about this is available in Crystal.
If you have any queries relating to this development, please contact LITA.