Panama’s Insurance Superintendency has announced the creation of a new obligatory register for all foreign reinsurers and reinsurance brokers wishing to do business in the country.
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.
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