29 Dic 23 Bill Project: Modifications in the Argentine Insurance Sector

Agustin Cerolini, Matías Ferrari, and Natalia Artmann

On December 27, 2023 the Bill for Bases and Starting Points for the Freedom of Argentines (the “Bill”) was introduced to the Argentine National Congress by the Executive Power (the “PEN” for its acronym in Spanish). In one of its chapters, the Bill proposes to modify the Law of insurance entities and its control (the «Law«).

Below, a detail of the main modifications that the Project proposes in this matter:

i. Grant authorized insurers the freedom to open or close branches in the country. In addition, they may establish branches or agencies abroad, provided they have prior authorization from the regulatory authority. The latter shall have the power to establish in a general and uniform manner the requirements and formalities to be fulfilled.

ii. Allow insurers to operate in all branches of insurance without the need for prior authorization, provided they comply with the requirements established by regulations. In addition, the obligation to inform the regulatory authority about insurance plans, as well as their technical and contractual elements, before their implementation.

iii. Repeal Article 24 of the Law, which currently lists the elements that insurance plans must contain in addition to those required by the regulatory authority.

iv. Establish that premiums be sufficient to guarantee the insurer’s compliance with its obligations and its constant economic-financial capacity. Additionally, it seeks to grant insurers the freedom to set commissions, provided they comply with regulations.

v. Repeal Article 28 of the Law, which currently provides that when an insurance company presents new plans or makes changes to existing ones, the regulatory authority shall take a decision within a maximum period of 90 days as from the date the approval request was submitted. In the case of changing of tariffs or their application in already approved plans, the regulatory authority shall decide, but within a period of 30 days.

If approved, these changes will have a significant impact on the functioning and operation of the insurance sector in Argentina.