Key Components Of Insurance And Reinsurance In Ecuador

1. Introduction and basic principles

Insurance and reinsurance contracts are governed by the Ecuadorian Commercial Code, together with the Ecuadorian Insurance Act 1998 (Ley General de Seguros 1998) and the Supreme Decree 1147. Ecuador is a civil law jurisdiction, which derives most of its law from statute. But as in most civil law jurisdictions prior decisions of the courts can be persuasive when interpreting the applicable law.

Under Ecuadorian law, the Ecuadorian Companies, Stocks and Insurance Supervisor (Superintendencia de Compañías, Valores y Seguros - SCVS) is an autonomous corporate body responsible for the supervision of all activities and entities involved in Ecuadorian securities and the insurance market.