Panama announces foreign reinsurer registration requirements
Wednesday, January 23 2013 @ 02:39 PM EST
Contributed by: Don Winner
Panama's new Insurance Law, which was passed in April 2012, provided for the creation of a foreign reinsurers' register but the Insurance Superintendency did not announce the requirements for joining the register until publication of a new regulation on December 28, 2012. Foreign reinsurers and reinsurance brokers now have until April 3, 2013, to become registered, a date which marks one year since the Insurance Law 2012 came into force. Local cedants will be prohibited from signing contracts with reinsurers and/or from using reinsurance brokers that are not on the register after that date.
The requirements for foreign reinsurers include providing an international risk rating report, a letter from the home regulator, copies of recent audited accounts and a check payable to the Insurance Superintendency together with a formal written application. The regulation also requires appointment of a resident representative domiciled in Panama. The requirements for foreign reinsurance brokers include a letter from the home regulator and a copy of the broker's E&O policy evidencing cover for operations in Panama.