The Argentinian Superintendencia de Seguros de la Nación (SSN) on 9 February 2018 authorised a Resolution supporting the commercialisation and implementation of microinsurance. The measure is part of broader efforts in Argentina to improve social and financial inclusion in the country. It is intended that by fostering the development of microinsurance in the local market, that the vulnerable, will have access to the benefits of insurance.
The Resolution on Microinsurance (which includes item 23.8 in the General Regulation of Insurance Business (Resolution SSN 38.708/2014)) comes hand in hand with the policy work on financial inclusion being carried out by the Ministry of Finance and the Argentinean Government.
The main points that the Resolution introduces are:
- Microinsurance plans will provide more beneficial terms and promote a quicker resolution of claims compared to traditional insurance;
- The deadline for the insurer to agree or not with the payment of claims is now 15 days (for traditional insurance the deadline is 30 days). Should the insurer require additional information of the facts, the deadline for coming to a decision about the claim may be extended to up to 10 calendar days. The failure to express the decision within the given timeframe implies acceptance.
The Resolution also requires insurers wanting to write business under the new microinsurance regulation to abide by the following requirements.
- The policy must unequivocally express the main risk covered and, in all cases, it must contain the term "microinsurance";
- Provide an explanatory guide on the contractual conditions to the policyholder in clear language. In addition, post the explanation of the coverage granted by the plan on their website including
a. the contractual conditions,
b. information for policyholders on how to pay the premiums and report the claims;
- The presentation of the Application Form-Certificate in case of Collective Insurance, and the Simplified Policy, in case of Individual Insurance, will be considered as sufficient proof of the existence of the contract.
Regarding intermediaries, the regulation establishes that any communication, claim or payment made to insurance intermediaries, companies of intermediaries or Institutional Agents will have the same effect as communication with an insurance company. In addition, a training program for intermediaries and other agents is under development.