Insurance companies, like many others, are exposed to multiple risks and, therefore, they are concerned about having mechanisms to ensure their operations, avoiding that, in the event of a large loss, the exposure of their patrimony becomes greater.
That is why reinsurance is such an important contract in insurance markets worldwide. It helps to (i) increase the financial backing capacity of the insurers, (ii) increase their number of insureds, (iii) limit their financial liability for specific risks, (iv) improve the coverage they offer to their insureds, and (v) improve corporate incomes, among others.
In view of the above, this report presents the responses prepared by Insuralex exclusive members within the region to some common questions regarding the regulation of the reinsurance contract in their respective jurisdiction.
The regulation in Latin American countries presents some differences in matters like: (i) the application of “cut through” clauses; (ii) the statute of limitations of legal actions arising from the agreement, and (iii) the applicability of the follows the fortunes principle.
On the other hand, we can find common aspects such as the possibility for the parties to agree on the application of a foreign law to the reinsurance contract, when international arbitration is agreed. Download the report: Insuralex 2022 Reinsurance Latin America Report.
Founded twenty years ago, in 2002, Insuralex is a group created by independent law firms that specialise in Insurance and Reinsurance coverage, defence, litigation and all other related legal services.
Insuralex works for a wide range of clients including insurance and reinsurance companies, Lloyd’s syndicates, insurance and reinsurance brokers as well as captives and self-insured companies.
Each member of Insuralex is considered to be a leading practice in this specialist field within its national jurisdiction.
Insuralex Latin American insurance law practice covers countries such as: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela.
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