Paraguay: Registration of Lloyd's as a Foreign Reinsurer
Lloyd’s has a long history of doing cross-border reinsurance business with Paraguayan insurers on a non-admitted basis.
However, the Paraguay Superintendency of Insurance Superintendencia de Seguros del Paraguay) has recently reinforced the requirement that all foreign reinsurers must be registered with the Superintendency in order to transact reinsurance business from the country, as per the provisions of Resolution No. 284/07 of November 2007.
Recently, certain syndicates at Lloyd’s have been registered with the Superintendency on an individual basis. Lloyd’s trading status in the majority of licensed territories is based on the ‘single entity’ concept whereby Lloyd’s underwriting members are collectively licensed or registered as a foreign reinsurer. The licence therefore applies to every member who is for the time being a member of Lloyd’s. International Market Access (IMA) will therefore be initiating discussions with the Paraguayan regulator in order that syndicate’s individual registrations can be replaced by Lloyd’s single registration.
In the meantime, if any syndicate is considering registering with the local regulator we ask that managing agents kindly liaise with IMA.
The ‘registration’ process in Paraguay is similar to that of the other nine LatinAmerican countries, such as Mexico, Argentina and Chile, where Lloyd’s is registered as a foreign reinsurer and requires submission of an application including the required regulatory information. Approval is granted subject to submission of updated information as part of the ‘renewal’ every two years.
In the meantime, if brokers require registration of any additional syndicates in order to place business from Paraguay, we would like to ask compliance officers to contact LITA (Lloyd’s International Trading Advice: +44 (0)20 7327 6677, E-mail: LITA@lloyds.com) in advance of taking any action.
Last updated on 17 Sep 2008
