The use of parametric insurance as an alternative to traditional indemnity-based insurance has increased over the last twenty years, particularly as a mechanism for insuring against extreme weather risks.
Following said increasement, parametric insurances in Latin America have not received a standardized legal treatment.
Every country has developed its applicable normative, at its sole discretion, depending on the requirements of the local insurance markets.
Notwithstanding, the following are the main regulatory trends for parametric insurances in the region which will be explained herein:
(i) countries where the local regulation does not provide nor mention any applicable law for parametric insurances and, therefore, as it is not explicitly forbidden, it is deemed permitted;
(ii) countries where the local regulation accepts parametric insurance;
(iii) countries where the local regulation and the parametric insurance commercialization are only for agriculture and livestock practices;
This report updates the report published in 2020, considering the new regulations on the subject issued in the last two years and the fact that new exclusive members from the region joined insuralex during the same period (Guatemala and the Dominican Republic).
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Founded in 2002, Insuralex is a worldwide network with more than 50 independent law firms that specialize in insurance and reinsurance coverage, defense, litigation, regulatory and corporate matters, and related legal services. Its members work 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 firm of Insuralex is a leader in its national or state jurisdiction on issues related to insurance and reinsurance.
Insuralex is particularly recognized in complex claims that require a high specialization and that have an international component that requires specialized knowledge in diverse jurisdictions. Its members are also recognized for providing legal advice to the insurance industry on corporate and regulatory matters.
With 20 years of continuous growth, Insuralex has become the world’s leading insurance and reinsurance network with a highly recognized recommendation from our partners and clients within the insurance and reinsurance industry.
Insuralex Latin American insurance law practice covers countries such as: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela.