{"id":81408,"date":"2025-04-23T13:17:05","date_gmt":"2025-04-23T13:17:05","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=81408"},"modified":"2025-08-20T15:28:33","modified_gmt":"2025-08-20T15:28:33","slug":"argentina-insurance-reinsurance","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/argentina-insurance-reinsurance\/","title":{"rendered":"Argentina: Insurance &amp; Reinsurance"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-81408","comparative_guide","type-comparative_guide","status-publish","hentry","guides-insurance-reinsurance","jurisdictions-argentina"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ribas, Shaw &amp; Asociados<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/04\/firm-logo-2.png\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Ribas, Shaw &amp; Asociados<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2024\/04\/firm-logo-2.png\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Insurance &amp; Reinsurance laws and regulations applicable in Argentina<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the writing of insurance contracts regulated in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Insurance Act (17,418) and the Insurance Companies Act (20,091), together with several regulations issued by the National Superintendency of Insurance (SSN), constitute the legal and regulatory framework of the Argentine insurance market.<\/p>\n<p>The insurance and reinsurance market in Argentina is highly regulated. The Insurance Companies Act empowers the SSN to regulate all aspects of insurance activity.<\/p>\n<p>Regulatory issues are governed by the Insurance Companies Act, implemented by the General Insurance Regulation (38,708\/14) and its annexes and amendments.<\/p>\n<p>Contractual aspects are regulated by the Insurance Act.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are types of insurers regulated differently (i.e. life companies, reinsurers?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>All insurers are subject to the same general regulations, in all general aspects of operation. However, the Insurance Companies Act, as implemented by the Insurance General Regulation, also contains several specific provisions regulating certain aspects of the operations of different types of insurers. There are specific minimum capital requirements depending on the type of insurance for which they are authorised to operate, among several other specific requirements.<\/p>\n<p>Section 1 of the Insurance Companies Act clarifies that all provisions related to insurance are applicable to both insurance and reinsurance activities.<\/p>\n<p>The Insurance General Regulation contains a specific chapter on reinsurance, with specific provisions for admitted foreign reinsurers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are insurance brokers and other types of market intermediary subject to regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Brokers\u2019 activity in Argentina is governed by the Insurance Intermediaries Act (Law 22,400 of February 18, 1981).<\/p>\n<p>Section 1 of the Insurance Intermediaries Act defines the brokers\u2019 activity as \u201cpromoting the agreement of insurance contracts, advising the insured parties\u201d.<\/p>\n<p>The SSN is in charge of the authorisation and registration of insurance intermediaries (Section 3, Insurance Intermediaries Act).<\/p>\n<p>Pursuant to Section 2 of Law 22,400, there are two types of insurance brokers:<\/p>\n<p>Direct broker: individual who promotes the agreement of insurance contracts and advises insured parties.<\/p>\n<p>Organizer broker (<em>productor asesor organizador<\/em>): individual who instructs, directs or advises direct brokers, as a part of an organization of at least 4 direct brokers, one of which may act as the organizer broker.<\/p>\n<p>The Insurance Intermediaries Act provides that brokers can organise companies, which can also be registered as insurance brokers (Section 20). These companies must provide their services only through the activity of registered brokers.<\/p>\n<p>The Insurance Act also refers to agents (Sections 55 and 54), who are appointed by an insurer and granted sufficient powers to act on its behalf and enter into insurance contracts. These agents may be assigned exclusive geographical areas.<\/p>\n<p>The general rules of the powers of attorney are applicable to these agents (agente institorio). Agents are authorised to enter into insurance contracts on behalf of the insurer, as well as receiving notifications and drawing up declaration of rescissions, unless its powers have been expressly limited. If the agent is appointed for a specific geographical area, the powers granted are limited to such area (this includes assets located or persons who have their usual residence in such area).<\/p>\n<p>In 2013, the SSN regulated the activity of insurance agents through Resolution 38,052\/2013.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is authorisation or a licence required and if so how long does it take on average to obtain such  permission? What are the key criteria for authorisation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The main authorisations required to provide insurance services are:<\/p>\n<ul>\n<li>incorporation and registration of a local corporate entity or branch with the local registry of commerce; and<\/li>\n<li>authorisation to provide one or more types of insurance from the insurance regulator, the SSN.<\/li>\n<\/ul>\n<p>The main requirements to obtain authorisation are as follows (Section 7 of the Insurance Companies Act):<\/p>\n<ul>\n<li>The entity must be duly incorporated according to general law and the specific requirements of the Insurance Companies Act (and its regulations);<\/li>\n<li>The exclusive corporate purpose of the entity must be insurance operations. Insurers may grant sureties or guarantees as long as such operations are economically and technically approved by the SSN as insurance operations;<\/li>\n<li>The lines of insurance for which authorisation is sought must be specified in the application;<\/li>\n<li>The entity must comply with the minimum capital requirements and the minimum duration requirements according to the specific line of insurance; and<\/li>\n<li>The entity\u2019s insurance plans must be submitted for approval.<\/li>\n<\/ul>\n<p>These requirements are regulated in detail under Section 7 of the General Insurance Regulation, as amended.<\/p>\n<p>The procedure involves filing a formal application with all relevant documents and evidence of compliance of all legal and regulatory requirements. The SSN may issue requests for information or observations to be remedied before authorisation is granted. The process typically takes between six and 12 months, but this will depend to a significant extent on the sufficiency of the application.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions or controls over who owns or controls insurers (including restrictions on  foreign ownership)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, there are no restrictions. However, Section 7.1.4 of the General Insurance Regulation establishes that owners or shareholders of other insurers whose authorisation to operate has been revoked by the SSN within the previous 5-year period are not allowed to participate in the market with new vehicles.<\/p>\n<p>Also, owners\/shareholders must comply with certain information requirements that may be subject to observations by the regulator.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to insure or reinsure risks in your jurisdiction without a licence or authorisation?  (i.e. on a non-admitted basis)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The authorisation by the SSN to operate in the Argentine insurance market is mandatory. Insurance operations performed without authorisation by the SSN constitute an irregular activity subject to sanctions, as provided under Sections 58\/61 of the Insurance Companies Act.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is a branch of an overseas insurer, insurance broker and\/or other types of market intermediary in  your jurisdiction subject to a similar regulatory framework as a locally incorporated entity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A branch of an overseas insurer is one the specific entities mentioned under Section 2 of the Insurance Companies Act that may apply for authorisation to operate in Argentina. The applicable regulatory framework is the same as for local insurers, leaving aside all other legal implications of operating through a branch.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions\/substance limitations on branches established by overseas insurers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to Section 2 of the Insurance Companies Act, branches established by overseas insurers are eligible for authorisation as long as they are organized as stock corporations, cooperatives or mutual insurance associations in their respective jurisdiction.<\/p>\n<p>Section 5 of the Insurance Companies Act establishes additional requirements:<\/p>\n<p>(a) Reciprocity: foreign companies may be authorized on the basis that Argentine insurers may also be allowed to carry on insurance business in the jurisdiction where the foreign insurer is incorporated.<\/p>\n<p>(b) Local representative: the company must appoint a local representative with sufficient powers to act in administrative proceedings before the SSN and in judicial proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What penalty is available for those who operate in your jurisdiction without appropriate  permission?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Section 61 of the Insurance Companies Act, irregular operations carried without prior authorisation by the SSN are subject to fines of up to AR$100.000 (a very outdated amount, which is currently insignificant) and disqualification for a period of 5 years. These penalties are extensive to managers, directors and other representatives.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How rigorous is the supervisory and enforcement environment? What are the key areas of  its focus?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The SSN has a strong presence as a regulator in the Argentine market. Some of the main areas of its focus are the maintenance of minimum capital requirements, due compliance with reporting obligations in charge of insurers and administrative complaints filed by policyholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the solvency of insurers (and reinsurers where relevant) supervised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The General Insurance Regulation sets out a detailed accounting regime covering:<\/p>\n<ul>\n<li>the establishment of mandatory reserves and retentions in different situations; and<\/li>\n<li>the types of instruments in which these reserved funds can be invested.<\/li>\n<\/ul>\n<p>The liquidity requirements vary depending on the financial standing of an insurer, taking into consideration:<\/p>\n<ul>\n<li>pending losses;<\/li>\n<li>claims;<\/li>\n<li>litigation; and<\/li>\n<li>other factors.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the minimum capital requirements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Each type of insurance cover has its own minimum capital requirements, which are defined in Section 30.1 of the General Insurance Regulation.<\/p>\n<p>The minimum capital requirements are established under three different criteria for calculation, each of which sets a minimum. The criterion that results in the highest minimum capital standard will apply:<\/p>\n<ul>\n<li>The first criterion is established under Section 30.1.1.1 of the General Insurance Regulation and provides fixed values for minimum capital requirements, currently ranging from ARS 23 million to ARS 231 million.<\/li>\n<li>The second criterion is established under Section 30.1.1.2 and takes into account:\n<ul>\n<li>the total premiums issued in the last 12 months (net of cancellations); and<\/li>\n<li>the total expenses incurred in the last 36 months (covering losses paid, adjustment costs net of recoveries and passive reinsurance).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li>The third criterion is established under Section 30.1.1.3 and establishes the minimum capital requirements in a similar manner, based on losses paid over the last 36 months.<\/li>\n<\/ul>\n<p>The second and third criteria begin to apply as soon as an insurer has commenced operations, taking into account the term for which it has been active, until the 12 or 36-month period that conforms to the minimum capital requirement calculation criteria has expired.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a policyholder protection scheme in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no general policyholder protection scheme in Argentina.<\/p>\n<p>However, there are legal and regulatory provisions addressing pending claims in the event an insurer is subject to voluntary or mandatory resolution proceedings, which indirectly protect policyholders. For example, policyholders have privileged claims in insolvency proceedings (Section 54, Insurance Companies Act). Also, reinsurance contracts must contain a specific clause establishing that these shall remain in place in the event an insurer enters a resolution proceeding, in which losses are payable to the appointed liquidator (Section 7, Annex 2, General Insurance Regulation).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are groups supervised if at all?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Insurance Companies Act and the General Insurance Regulation have no specific provisions on insurance groups.<\/p>\n<p>If an insurer is part of an economic group, the complete structure of the group must be informed to the SSN during the authorisation process (including other insurers and\/or other companies). The SSN may require consolidated financial statements and other information, but the only restriction established under Section 7.1.1, V. h) is that the structure of the group does not constitute an impediment for supervision and regulatory control by the SSN.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do senior managers have to meet fit and proper requirements and\/or be approved?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The General Insurance Regulation provides a separate set of annexes under Section 9.1 containing a description of recommendations and governance requirements.<\/p>\n<p>Annex 9.1.3 establishes the following main requirements:<\/p>\n<ul>\n<li>Members of the board or corporate bodies must be proficient in the technical aspects of the insurer\u2019s activities and in high ethical standards, which in principle requires a clean record of administrative sanctions from the SSN or other government entities.<\/li>\n<li>At least two-thirds of the members of the corporate bodies must have prior experience in the insurance or finance business, with a minimum of one member. The SSN recommends the establishment of a board or corporate body with five or more members, which should be periodically renewed.<\/li>\n<li>The SSN may observe the appointment of a director\/officer if there are questions regarding his or her eligibility.<\/li>\n<li>One of the members of the board must be an independent director, with:\n<ul>\n<li>no commercial ties with the insurer other than those directly related to his or her activity as director; and<\/li>\n<li>no personal interest or connection with the insurer\u2019s stakeholders.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent might senior managers be held personally liable for regulatory breaches in  your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As a general rule, pursuant to Section 59 of the Corporations Act, directors must act with good faith and carry the conduct of a good businessperson. Failure to comply with their obligations may result in unlimited liability for damages arising from their acts or omissions.<\/p>\n<p>Insurance operations carried without prior authorisation of the SSN are penalized with fines and disqualification, and these penalties are extensive to senior managers (Section 61, Insurance Companies Act).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there minimum presence requirements in order to undertake insurance activities in  your jurisdiction (and obtain and maintain relevant licenses and authorisations)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Insurers must be duly incorporated in Argentina according to general law and the specific requirements of the Insurance Companies Act (and its regulations), which involve the appointment of representatives and establishment of a corporate domicile;<\/p>\n<p>They must also comply at all times with the minimum capital requirements according to the specific line of insurance;<\/p>\n<p>Moreover, general compliance with reports on corporate governance and general operations, financial statements, as well as other reports and record keeping requirements established by the SSN are also necessary, since failure to comply with many of these duties and obligations may result in the potential application of penalt\u00edes, including the revocation of license or authorisation to operate.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on outsourcing services, third party risk management and\/or  operational resilience requirements relating to the business?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to Section 16 of the Insurance Companies Act, the administration and corporate management of an insurer cannot be delegated or outsourced.<\/p>\n<p>From a general perspective, the very detailed and specific regulation of insurers\u2019 book-keeping requirements, technical organizational and operational standards (minimum capital requirements, insurance plans, mandatory reserves, auditing, investment policy, etc) and the strict supervision by the SSN constitute a vast set of provisions and policies aimed at preserving the good standing and ability to operate of authorised insurers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on the types of assets which insurers or reinsurers can invest in or  capital requirements which may influence the type of investments held?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Section 35 of the Insurance Companies Act, as implemented by the General Insurance Regulation, establishes an investment regime which determines the type of assets in which insurers can hold investments, with corresponding maximum percentages of exposure.<\/p>\n<p>These authorised investments include:<\/p>\n<ul>\n<li>Titles or other securities of the national public debt or guaranteed by the Nation, loans for which the Nation is liable through the Ministry of Economy or the Argentine Central Bank, and titles of the internal public debt of the provinces issued in accordance with their respective Constitutions, and also those of the municipalities that have the guarantees of the respective municipalities;<\/li>\n<li>Public securities of foreign countries, up to the amount of the technical reserves corresponding to policies issued in the currency of those countries<\/li>\n<li>Negotiable obligations that have an authorised public offer issued by stock corporations, limited liability companies, cooperatives, or civil associations and in debentures, in both cases with a first-degree special or floating guarantee on assets located in the country or with a guarantee from Mutual Guarantee Societies (SGR) or guarantee funds.<\/li>\n<li>Loans with collateral guarantee or real estate mortgage in the first degree on assets located in the country, excluding deposits, quarries, and mines. The loan shall not exceed fifty percent (50%) of the realization value of the asset, especially appraised for that purpose by the insurer;<\/li>\n<li>Real estate located in the country for own use, building, rent, or sale;<\/li>\n<li>Shares of corporations established in the country or foreign ones included in Article 124 of the Corporations Act or of foreign ones whose main purpose is the provision of public services within the Nation, which are listed on stock exchanges in the country or abroad;<\/li>\n<li>Loans guaranteed with titles, debentures, and shares of subsections a), b), c), and f), up to fifty percent (50%) of the market value of those securities;<\/li>\n<li>Financial operations fully guaranteed by banks or other financial entities duly authorised to operate in the country by the Argentine Central Bank, with prior authorisation in each case from the SSN.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there requirements or regulatory expectations regarding the management of an insurer's reinsurance risk, including any restrictions on the level \/ type of reinsurance utilised?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Insurance Companies Act and the General Insurance Regulation have several provisions regulating the management of reinsurance risk, which involve certain mandatory clauses and technical reserves.<\/p>\n<p>The SSN established a regime for the authorisation of local reinsurers and admitted foreign reinsurers which are allowed to operate in Argentina (Annex 2 of the General Insurance Regulation).<\/p>\n<p>Foreign reinsurers that apply for admitted status must:<\/p>\n<ol type=\"a\">\n<li>Provide evidence that they are legally established and authorised to conduct reinsurance operations in their country of origin and are authorised to reinsure risks ceded from abroad, indicating the start date of operations.<\/li>\n<li>Provide evidence that the legislation in force in the country of origin allows them to fulfill commitments arising from reinsurance contracts abroad, in freely convertible currency.<\/li>\n<li>Provide an external auditor&#8217;s report showing that they have a net worth of not less than USD 100,000,000.<\/li>\n<li>Demonstrate a rating for the last 3 years, assessed by one of the following international business rating agencies: A.M. Best: minimum rating of B+; Standard &amp; Poor&#8217;s International Ratings Ltd: Claim Paying Ability, minimum rating of BBB; Moody&#8217;s Investors Service: Financial Solvency, minimum rating of BBB; Fitch IBCA Ltd.: Claim Paying Ability, minimum rating of BBB.<\/li>\n<li>Appoint an attorney with broad administrative and judicial powers who must establish an address in the City of Buenos Aires.<\/li>\n<li>Submit financial statements from the last 2 fiscal years, with the opinion of external auditors.<\/li>\n<li>Demonstrate that they are established and registered in states or territories considered &#8220;Cooperative for the purposes of tax transparency,&#8221; as provided in Decree No. 589\/2013 and its complementary regulations, or they must demonstrate that they are subject to the control and supervision of an agency that performs similar functions to the SSN, and with which a memorandum of understanding for cooperation and exchange of information has been signed;<\/li>\n<li>Demonstrate that they are established and registered in states or territories that are cooperative in the global fight against money laundering and terrorism financing, according to the criteria by the FINANCIAL ACTION TASK FORCE (FATF); when not established and registered in such jurisdictions, the authorisation request will be evaluated applying enhanced due diligence, proportional to the risks, and countermeasures indicated in Recommendation 19 of the FINANCIAL ACTION TASK FORCE (FATF) and its Interpretative Note may be applied.<\/li>\n<\/ol>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are sales of insurance supervised or controlled?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>According to Section 4 of the Insurance Act, insurance contracts are consensual (ie, they are entered into through the parties\u2019 consent and enter in force from that moment, even before the policy is issued).<\/p>\n<p>If there are any differences between the proposal form and the terms of the policy, such differences will be considered accepted by the insured if no claim is made within one month of having received the policy (Section 12 of the Insurance Act).<\/p>\n<p>An insurance contract is deemed to be concluded when the proposal of the insured is accepted by the insurer. This is the legal definition provided by the Insurance Act, although it has become outdated in some respects. In practice, the main terms and conditions and a premium quotation are usually made available to the insured, which in term accepts by requesting the issuance of an insurance policy under the conditions discussed.<\/p>\n<p>Insurance contracts can only be evidenced in writing. Other means of evidence are admitted if there is any form of written proof which may indicate the existence of the contract (Section 11 of the Insurance Act).<\/p>\n<p>Insurance plans and the general and particular insurance policy clauses for each type of cover require approval by the SSN. Insurers may also apply for authorisation to provide any given type of insurance cover (provided that they meet all regulatory requirements) available under insurance plans and policies that have already been approved by the regulator for other insurers.<\/p>\n<p>Also, pursuant to Section 158 of the Insurance Act, certain rules of the Insurance Act cannot be modified by the parties. These rules relate to:<\/p>\n<ul>\n<li>non-disclosure (Section 5);<\/li>\n<li>wilful non-disclosure (Section 8);<\/li>\n<li>losses that occur during the three-month term within which the insurer may challenge the contract due to non-disclosure (Section 9);<\/li>\n<li>adjustment of the premium due to risk decrease (Section 34); and<\/li>\n<li>the duty to notify the insurer of any aggravation of the risk (Section 38).<\/li>\n<\/ul>\n<p>Other rules set out in Section 158 can only be modified in favour of the insured. These modifications cannot be included within the general conditions of the contract and require separate treatment.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is it possible to actively market the sale of insurance into your jurisdiction  on a cross border basis and are there specific or additional rules pertaining to distance selling or  online sales of insurance?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Section 2 of Law 12,988 (as amended) provides that insurance coverage for persons, assets or any other insurable interest located in Argentine jurisdiction must be acquired from Argentine-licensed insurance companies. Under this regulation, it is not possible to actively market the sale of insurance in our jurisdiction on a cross border basis.<\/p>\n<p>In principle, penalties established under Law 12,988 (fine of up to 25 times the amount of the premium) only apply to local policyholders and intermediaries acting in breach of its provisions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are insurers in your jurisdiction subject to additional requirements or duties in respect of  consumers? Are consumer policies subject to restrictions, including any pricing restrictions? If  so briefly describe the range of protections offered to consumer policyholders<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Insurance Act establishes certain provisions protecting the insured party \u2013 for example, Section 11 provides that the insurance policy must be clearly written and be easily readable, which has led courts and authors to generally consider that ambiguous or obscure clauses must be construed against the insurer. In general, however, the protection of the insured as a consumer is not a key focus of the statute.<\/p>\n<p>The absence of such provisions was initially addressed through judicial interpretation. Since its enactment, the Consumer Protection Act (24,240) has also been applied in numerous judicial precedents in insurance law cases.<\/p>\n<p>Even where matters are expressly established by the Insurance Act \u2013 such as the one-year time bar for legal action against insurers (Section 58) \u2013 consumer law has been applied as an alternative solution, extending this period to the three-year term specified in the Consumer Protection Act, up to the general five-year term for contractual claims.<\/p>\n<p>The main provisions of the Consumer Protection Act applicable to insurance claims are as follows:<\/p>\n<ul>\n<li>Information: The consumer must be provided with clear and detailed information on all services\/products.<\/li>\n<li>Advertising: Offers made through public advertising are binding and their stipulations are regarded as part of the contract.<\/li>\n<li>Respectful and dignified treatment of the consumer: This includes providing attention to claims, complaints and queries regarding the services\/products.<\/li>\n<li>Inapplicability of abusive terms and conditions: These are considered null and void<\/li>\n<li>Punitive damages: Non-compliance with the Consumer Protection Act may result in the judicial application of civil monetary sanctions, in favor of the consumer. The maximum sanction applicable is currently around USD 1.7 million under a flexible standard based on life cost statistics published by the government,<\/li>\n<\/ul>\n<p>With regard to consumer protection, the SSN has:<\/p>\n<ul>\n<li>issued a Manual of Procedures for Queries and Complaints (Resolution 464\/2018); and<\/li>\n<li>established a special division for the attention and guidance of policyholders.<\/li>\n<\/ul>\n<p>The complaints of policyholders in some cases result in administrative proceedings against insurers.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal or regulatory resolution regime applicable to insurers in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is a specific resolution regime established under Sections 50 to 52 of the Insurance Companies Act.<\/p>\n<p>An insurer may voluntarily resolve to dissolve (Section 50). In this case, the liquidation shall be conducted by its statutory organs, with the supervision of the SSN.<\/p>\n<p>If the insurer does not proceed to its immediate liquidation or if the protection of the policyholders&#8217; interests requires it, the SSN may request the Commercial Courts to appoint a judicial liquidator.<\/p>\n<p>When the liquidation proceeding is a consequence of the revocation of an insurers\u2019 authorisation (Section 51), the SSN will appoint a liquidator and give intervention to the Commercial Courts.<\/p>\n<p>Insurers may not resort to preventive settlement and they also are not susceptible to being declared bankrupt under the general commercial regulations.<\/p>\n<p>Commercial Courts may order the dissolution of the company and its liquidation by the regulatory authority if the general conditions of bankruptcy are met and the SSN has yet not initiated the administrative liquidation proceedings.<\/p>\n<p>The liquidation is carried by the SSN in accordance with the provisions for commercial insolvency proceedings (bankruptcy).<\/p>\n<p>The SSN may terminate insurance contracts with a fifteen-day notice, formally notifying policyholders. The insurer is liable for any losses occurring during this period unless the policyholder already entered into a new insurance contract. In the case of life insurance, the SSN will first arrange for the transfer of the portfolio, if possible.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are the courts adept at handling complex commercial claims?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Our civil and commercial courts have an extensive record of judicial precedents in insurance law matters and are very adept at handling complex commercial claims.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is alternative dispute resolution well established in your jurisdictions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Argentine law, there is no specific form of insurance arbitration (as already mentioned, arbitration clauses are forbidden in insurance policies pursuant to Section 57 of the Insurance Act, but <em>post litem<\/em> arbitration is permissible).<\/p>\n<p>Mediation<\/p>\n<p>The Mediation Act (Law 24,573) provides for compulsory pre-trial mediation in the City of Buenos Aires in a number of cases, including insurance matters. Mediation proceedings are also mandatory and\/or are available in various other local jurisdictions.<\/p>\n<p>The mediation process is not subject to any formality. If an agreement is reached, a written record is drafted incorporating the terms of the settlement, which has the same legal effect as a judgment.<\/p>\n<p>Courts are not involved in mediation proceedings. Courts only intervene after mediation fails and a lawsuit is filed.<\/p>\n<p>Mediation is a very well established dispute resolution alternative in our jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a statutory transfer mechanism available for sales or transfers of books of  (re)insurance? If so briefly describe the process<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As specified under Section 46 of the Insurance Companies Act, the total or partial transfer of a portfolio requires authorisation from SSN.<\/p>\n<p>The total or partial transfer of a portfolio can only be made to insurers authorised to operate in Argentina.<\/p>\n<p>Insurers that agree to the total or partial transfer of a portfolio shall submit the proposed contract to the SSN and publish notices for a term of three days, announcing the transfer in the official gazettes of the jurisdictions where the head office and each branch are located, so that policyholders may be informed and submit their objections to the SSN within fifteen days from the last publication.<\/p>\n<p>Once the term has expired, the SSN issues a decision. Approval may be denied if the interests of the policyholders are not deemed to be sufficiently protected. A denial by the SSN is subject to appeal to Commercial Courts.<\/p>\n<p>Once the contract is approved, it is binding for all parties involved.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the primary challenges to new market entrants? Are regulators supportive (or  not) of new market entrants?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The authorisation process has certain complexities from a regulatory perspective, but the main challenges for new insurers remain operational and business related. The SSN is supportive of new entrants, aside from occasional administrative delays or bureaucratic setbacks which may occur.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is the market being challenged by digital innovation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>From a regulatory standpoint, the SSN has been cautious with a gradual approach to digitization over recent years. Aside from the normal challenges that any major operational change brings, the market has adapted to the digital developments in the regulatory framework. From a general market perspective, there are several insurtech startups and digital innovation initiatives by insurers. Some insurers have launched apps and updated their digital channels to support new features and products, and this trend seems to gain momentum.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the digitization of insurance sales and\/or claims handling treated in your  jurisdiction, for example is the regulator in support (are there concessions to rules being made) or  are there additional requirements that need to be met?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The digitization of the insurance market has advanced over recent years. The SSN has implemented the digitization of insurance policies and has also established digital books for insurers\u2019 operations.<\/p>\n<p>From a sales perspective, many insurers have digital channels that facilitate online quotations, especially for automobile insurance, property and personal injury insurance.<\/p>\n<p>The SSN established a digital channel registry for insurers, brokers and agents. Claims are regularly filed through digital channels, which have more development in automobile insurance and other massive products.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is insurers' use of customer data subject to rules or regulation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The general legislation on data protection is the Personal Data Protection Act (25,356), implemented by Decree 1558\/2001.<\/p>\n<p>This legislation applies to insurance activities, and many insurers are duly registered for the collection, archiving and treatment of personal data in accordance with the law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are there additional restrictions or requirements on sharing customer data  overseas\/on a cross-border basis?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Personal Data Protection Act has specific provisions with regards to international transfer of personal data, in order to ensure similar standards of protection.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are insurers subject to ESG regulation or oversight? Are there regulations\/requirements, including in connection with managing climate change and climate  change related financial risks specific to insurers? If so, briefly describe the range of measures  imposed.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no general regulations or oversight applicable to insurers in Argentina to this date.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal or regulatory framework in respect of diversity and inclusion to which  (re)insurers in your jurisdiction are subject?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The SSN has been taking steps in this direction, with the creation of a special committee on Diversity and Inclusion issues. Several insurers and major brokers have established diversity and inclusion programs and policies as well.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Over the next five years what type of business do you see taking a market lead?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>We believe there is great potential for cybersecurity risks insurance and insurtech initiatives.<\/p>\n<p>The changes in the local political landscape and current economic policy are slowly generating positive expectations for the next years, and this could prove an extremely interesting opportunity for the local insurance market as a whole.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">5225<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/81408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=81408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}