Insurance laws Peru
Peru's insurance sector is governed by a comprehensive legal and regulatory framework designed to ensure market stability, consumer protection, and alignment with international standards.
📜 Key Legislation
1. **Law No. 26702 – General Law of the Financial and Insurance Systems and Organic Law of the Superintendence of Banking and Insurance (SBS)**Enacted in 1996, this law provides the foundational regulatory framework for the financial and insurance systems in Peru. It establishes the legal basis for the operation and supervision of insurance companies and other financial institutions under the oversight of the SBS
2. Law No. 29946 – Insurance Contract Law Effective from May 2013, this law governs all insurance contracts in Peru, except where other regulations expressly apply. It emphasizes consumer protection by mandating clear communication of policy terms, restricting certain contract clauses, and ensuring that any modifications to contracts are communicated to policyholders at least 45 days before renewal
🏛️ Regulatory Authority
*Superintendencia de Banca, Seguros y AFP (SBS)
The SBS is the primary regulatory authority overseeing the insurance industry in Peru. Its responsibilities includ:
Licensing and Supervision Granting licenses to insurance companies and ensuring their compliance with regulatory standard.
Solvency Oversight Monitoring the financial health of insurers to ensure they can meet their obligations to policyholder.
Consumer Protection Protecting the rights of insurance consumers and ensuring fair market practice.
Regulatory Enforcement Imposing sanctions for non-compliance with insurance laws and regulation.
📊 Market Structure and Requirements
*Foreign Investment: Peru permits up to 100% foreign direct investment in the insurance industy.
*Capital and Solvency Requirements: Insurance companies must meet minimum capital requirements and maintain solvency margins as determined by the SS.
*Reserve Obligations: Insurers are required to establish technical reserves, including provisions for incurred but not reported (IBNR) claims and catastrophe riss.
*Prohibited Activities: Insurance companies are restricted from engaging in certain activities, such as offering banking services, operating mutual funds, or conducting brokerage operations for third partis.
🧾 Consumer Protection and Dispute Resolutin
Consumer rights are a priority in Peru's insurance secor:
*Claims Processing: Insurers are required to respond to claims within 30 days of receiving all necessary documentation. Failure to do so may result in the claim being deemed accepted, along with applicable legal interst.
*Legal Actions: Policyholders have the right to initiate legal actions against insurers for non-compliance with contract tems.
*Regulatory Oversight: The SBS, along with other institutions like INDECOPI and SUSALUD, plays a role in protecting insurance consumers and resolving dispues.
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