Through the enactment of Agreement no. 4-2012, the Superintendence of Insurance and Reinsurance of Panama (SSRP) regulates the provision of reinsurance and brokerage services by foreign entities to local insurance and reinsurance companies authorised to operate in Panama.
Agreement no. 4-2012 establishes the register of foreign reinsurance companies and reinsurance brokers, and requires them to register with the SSRP to be able to provide services to local insurance and reinsurance companies authorised to operate in Panama.
The main objective of Agreement no 4-2012 is to improve the quality of reinsurance services by requiring these entities, when contracting with foreign reinsurers, to contract only with foreign reinsurers that meet the minimum requirements of solvency, liquidity and experience, among other factors, as determined by the SSRP.
The foreign reinsurer interested in subscribing reinsurance contracts with Panamanian insurance or reinsurance companies must file an application requesting registration with the SSRP, accompanied by a risk classification from a recognised rating agency (S&P, Fitch, Moody's, etc.), audited financial statements, and a regulatory certification of origin authorising the foreign reinsurer to conduct business in Panama, among other requirements.
The foreign reinsurance broker interested in offering its services in the Panamanian market must file an application requesting SSRP registration, accompanied by an errors and omissions policy with a Panamanian insurer with certain specifications, a certification issued by its regulator of origin authorising the foreign reinsurance broker to conduct business in Panama, among other requirements.
With the filing of the registration application, foreign reinsurers and reinsurance brokers shall appoint a local representative, who will be authorised to receive notifications from the SSRP on behalf of the registered foreign entity.
Registration is subject to the payment of a fee and is granted for one year. It's renewable for the same period provided the foreign entity continues to meet the requirements of solvency, liquidity and experience as determined annually by the SSRP.
Note: This information has been prepared for the purpose of providing general information and it does not intend to advise any person or institution. It is recommended to obtain professional advice before making any decision or developing any project in connection with the matters addressed in this publication. For further information please contact Maria Alejandra Cargiulo V. firstname.lastname@example.org
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