Argentina hikes capital requirements

Argentina's insurance watchdog SSN issued a resolution that introduced new rules governing capital requirements.

Under the new regime, most minimum capital levels for insurers double and adjustments will be made every quarter, local insurance website 100% Seguros reported.

The rules come into force in January and in some cases insurers can gradually comply with the new requirements.

Also, for certain lines, an insurer must meet a minimum premium limit in order to remain authorized to sell the products in question. At the end of each year, an insurer must be able to demonstrate that the amount of premiums written is greater than 5% of the minimum capital required to operate in the respective line.

The minimum capital requirement for local reinsurers remains 350mn pesos (US$9.27mn), the resolution states.

Read the full resolution (in Spanish)