Susep Publishes new Resolution regarding changes in the taking out of Insurance by Pension Fund Entities

On June 10, 2020, the Superintendency of Private Insurance (Susep) published Resolution CNSP No. 385 of June 9, 2020 (“Resolution”), which provides for the coverages that can be offered by insurance companies to closed supplementary pension fund entities.

The new Resolution updates the rules for the taking out of insurance coverage by pension fund entities, replacing the previous resolutions that had addressed the issue, i.e. Resolution CNSP No. 119, of December 22, 2004 and CNSP Resolution No. 345, of May 2, 2017, which are now repealed.

The main changes brought by the new Resolution are i. exclusivity in the offering of savings plans by insurance companies that are authorized to operate with pension plans and ii. the possibility for insurance companies that operate in damage insurance to offer stop loss insurance in the event of retention of part of the risk insurable by the pension fund entity, as a deductible, for structured cover under the defined benefit or variable contribution modalities.

The new Resolution will take effect on July 1, 2020.

Demarest’s Insurance and Reinsurance team is entirely available to provide any clarifications on the subject.