1 Legal framework

1.1 Which legislative and regulatory provisions govern the insurance sector in your jurisdiction?

The Insurance Act (17,418) and the Insurance Companies Act (20,091), together with several regulations issued by the National Superintendency of Insurance (SSN), constitute the legal and regulatory framework of the Argentine insurance market.

The insurance and reinsurance market in Argentina is highly regulated. The Insurance Companies Act empowers the SSN to regulate all aspects of insurance activity.

Regulatory issues are governed by the Insurance Companies Act, implemented by the General Insurance Regulation (38,708/14) and its annexes and amendments.

Contractual aspects are regulated by the Insurance Act.

1.2 Which bilateral and multilateral instruments on insurance have effect in your jurisdiction?

The Ministry of Foreign Affairs lists several minor instruments – mostly bilateral – which relate to very specific insurance matters (most of these are outdated). We have not seen these instruments applied either in legal practice or in judicial precedents.

More recently, the SSN has executed memoranda of understanding on international cooperation with regulators and insurance authorities in different countries, including the United States, Mexico, Spain, Brazil, Peru, Colombia and Uruguay.

1.3 Which bodies are responsible for enforcing the applicable laws and regulations? What powers do they have?

The SSN is the local regulator.

The Insurance Companies Act establishes the SSN, originally created in 1937, as the local authority that governs all matters relating to the regulation and enforcement of insurance legislation passed by the Argentine Congress.

The SSN has a wide range of powers and faculties, including the power to:

  • authorise, control and supervise all insurers;
  • conduct inspections;
  • enact general regulations for insurance activity;
  • authorise and register new insurers, reinsurers and intermediaries;
  • apply administrative sanctions;
  • receive reports on non-compliance or misconduct by insurers, reinsurers and intermediaries; and
  • register and keep records relating to directors, auditors, founders, promoters and adjusters involved in the insurance business

1.4 What is the regulators' general approach in regulating the insurance sector?

Certain legal provisions define the general approach of the local authorities in regulating the insurance sector.

Section 2 of Law 12,988 provides that insurance coverage for persons, assets or any other insurable interest located within the Argentine jurisdiction must be purchased from Argentine-licensed insurance companies.

The Insurance Companies Act and the general regulations implementing its provisions enacted by the SSN comprise a very detailed corpus, which governs all aspects of insurance activity.

2 Insurance contracts

2.1 What are the main types of insurance available in your jurisdiction?

The main types of insurance available are:

  • property insurance;
  • civil liability insurance (eg, general insurance, errors and omissions insurance, directors' and officers' insurance); and
  • life, labour compensation, transport, marine, credit and surety insurance.

2.2 Are all insurance contracts regulated? What terms do they typically include?

Insurance plans and the general and particular insurance policy clauses for each type of cover require approval by the National Superintendency of Insurance (SSN). Insurers may also apply for authorisation to provide any given type of insurance cover (provided that they meet all regulatory requirements) available under insurance plans and policies that have already been approved by the regulator for other insurers.

Also, pursuant to Section 158 of the Insurance Act, certain rules of the Insurance Act cannot be modified by the parties. These rules relate to:

  • non-disclosure (Section 5);
  • wilful non-disclosure (Section 8);
  • losses that occur during the three-month term within which the insurer may challenge the contract due to non-disclosure (Section 9);
  • adjustment of the premium due to risk decrease (Section 34); and
  • the duty to notify the insurer of any aggravation of the risk (Section 38).

Other rules set out in Section 158 can only be modified in favour of the insured. These modifications cannot be included within the general conditions of the contract and require separate treatment.

2.3 What are the formal and documentary requirements for conclusion of an insurance contract?

Pursuant to Section 1 of the Insurance Act, "an insurance contract exists when the insurer assumes the obligation, by means of a premium or quotation, to compensate a damage or perform an agreed action if the foreseen event occurs".

Entering into an insurance contract usually involves the following stages.

Proposal form: According to Section 4 of the Insurance Act, the insurance contract is consensual (ie, it is entered into through the parties' consent and it enters in force from that moment, even before the policy is issued). The proposal binds neither the insured nor the insurer, and it may be subject to prior knowledge of the general conditions.

If there are any differences between the proposal form and the terms of the policy, such differences will be considered accepted by the insured if no claim is made within one month of having received the policy (Section 12 of the Insurance Act).

Quotation: Under some circumstances, the quotation of the premium may be fixed or may be made available to the future insured prior to the proposal being placed.

Placement: An insurance contract is deemed to be concluded when the proposal of the insured is accepted by the insurer. This is the legal definition provided by the Insurance Act, although it has become outdated in some respects. In practice, the main terms and conditions and a premium quotation are usually made available to the insured, which in term accepts by requesting the issuance of an insurance policy under the conditions discussed. The legal solution is to consider insurance as a consensual contract, which is concluded and binding upon the expression of consent regarding the main terms of the insurance agreement, which does not require any written or formal expression, including the actual issuance of the policy (Section 4 of the Insurance Act).

Evidence of contract: An insurance contract can only be evidenced in writing. Other means of evidence are admitted if there is any form of written proof which may indicate the existence of the contract (Section 11 of the Insurance Act).

Utmost good faith, disclosure and representations: The duty to act in good faith is essential in insurance law and is binding on both the insured and the insurer.

Any non-disclosure or misrepresentation, or any failure to disclose material circumstances known by the insured before the contract is concluded – even if made in good faith – which in the opinion of experts could have prevented the insurer from entering into the contract or prompted the insurer to modify its conditions had the insurer been aware of the real status of the risk, makes the contract null and void (Section 5 of the Insurance Act). If the failure to disclose was not wilful, the insurer may, at its sole discretion:

  • annul the insurance contract by returning the collected premium with a deduction of the applicable expenses; or
  • readjust the premium with the consent of the insured.

However, if the insured acted wilfully, in principle, the insurer may keep the premium and annul the contract.

2.4 What are the procedural requirements for conclusion of an insurance contract?

Under the Insurance Act, insurance contracts are concluded when consent is given regarding the basic general terms of the insurance agreement, prior to the issuance of the insurance policy.

2.5 What are the respective obligations and liabilities of insurer and insured, both on concluding an insurance contract and during its term? What are the consequences of any breach?

On a general basis, the insurer assumes the obligation to provide coverage of the insured risk up to the maximum of the insured amount, for the term of the contract.

The insured, on the other hand, assumes the obligation to pay the premium and comply with several contractual duties regarding:

  • the reporting of claims;
  • aggravation of the insured risk;
  • provision of information and documents relating to a claim or a loss; and
  • minimisation of damages.

Both parties are also under an utmost good-faith rule, which is the general principle for the interpretation of each party's obligations.

In the case of the insured, any non-compliance with the obligations to pay the premium, timely report any losses or claims, and provide accurate and complete information and documentation regarding the risk or loss/claim may result in the loss of all rights under the insurance contract.

3 Making a claim

3.1 What are the formal and documentary requirements for making a claim?

Argentine law requires the insured to give notice of loss within three days of learning of the loss (Section 46 of the Insurance Act).

The time limit for giving notice of loss may be extended, but not shortened, by the insurance policy. For example, errors and omissions and directors' and officers' liability insurance policies usually contain extended terms, which are valid under Argentine law.

Depending on the circumstances of the case, late notification of the loss may entitle the insurer to reject coverage (Section 47 of the Insurance Act).

Notice of a claim is not a rigorously formal act; it is deemed complete when the occurrence of the loss or claim is communicated, in principle, by any means, unless otherwise stated in the contract.

Good faith and claims: In case of a loss, the insured must:

  • promptly give notice of it (within three days of the occurrence, unless a longer term has been agreed);
  • provide the insurer, at its request, with all necessary information to investigate and adjust the claim; and
  • refrain from changing the status of the property affected by the loss.

The insurer, in turn, must:

  • avoid unnecessary delays in investigating the loss; and
  • accept or deny coverage within 30 days (Section 56 of the Insurance Act), under penalty of the coverage being deemed accepted in case of silence.

The insurer will be released from its obligation to cover the loss if the insured:

  • fraudulently breaches its duty to provide the necessary information to investigate and adjust the claim;
  • fraudulently exaggerates the loss; or
  • provides false evidence of the loss.

3.2 What are the procedural requirements for making a claim?

See question 3.1.

3.3 On what grounds can the claim be denied? How can the insured challenge the denial of claim?

Insurance claims can be denied on different grounds, which vary depending on the type of insurance and its specific clauses.

On a general basis, claims and losses may be denied where:

  • a coverage exclusion clause is deemed to apply;
  • the insured has not complied with duties or obligations for which non-compliance results in the loss of rights under the insurance contract (eg, where a report of a loss maliciously conceals important information or the insured is late in reporting a loss or claim); or
  • the notice or information provided in connection with the loss or claim makes it clear that it does not fall within the coverage granted by the insurance policy.

For many types of insurance contracts, coverage may be suspended due to lack of payment of the premium.

The insured can challenge the rejection of a claim or loss:

  • informally, by negotiating directly with the insurer;
  • by filing for mediation or in some cases consumer mediation (mediation is mandatory in some jurisdictions prior to filing a lawsuit); and/or
  • by filing a lawsuit in court.

3.4 How can third parties make a claim?

In principle, third parties cannot act as a party under the insurance contract. Argentine law does not establish any direct action against the insurer in favour of a third-party claimant. However, in civil liability insurance, the insurer usually negotiates claims directly on behalf of the insured. In judicial proceedings against insured parties, insurers are frequently summoned as liable third parties up to the insured amount, or even listed as defendants.

Despite some judicial interpretations and some authors supporting the introduction of direct action in favour of third parties affected by a loss, Section 118 of the Insurance Act establishes that the insurance may be summoned to judicial proceedings as a third party.

4 Form and structure of insurers

4.1 What types of insurance companies are typically found in your jurisdiction?

Pursuant to Section 2 of the Insurance Companies Act, only the following entities are allowed to carry on insurance business in Argentina, with the prior authorisation of the National Superintendency of Insurance (SSN):

  • stock corporations, cooperatives and mutual insurance associations;
  • branches or agencies of foreign insurers, as long as they are organised as one of the types of entities described above; and
  • state-owned or mixed state-private entities (national, provincial or municipal entities).

4.2 How are these insurance companies typically structured and funded?

Insurance companies are usually incorporated and registered as stock corporations with the local registry of commerce corresponding to the jurisdiction of their domicile. This proceeding involves the participation of the SSN.

Before being granted registration with the registry of commerce and being formally incorporated, these corporate entities must apply for authorisation from the SSN to provide a certain type of insurance, or more than one.

Once the SSN has granted authorisation, the administrative file is forwarded once again to the registry of commerce for completion of the registration process and formal incorporation.

Funding is usually provided by private or public investors.

4.3 Are there any restrictions on foreign ownership of insurance companies?

Pursuant to Section 2(b) of the Insurance Companies Act, foreign insurers may act in the Argentine market by:

  • establishing a branch in Argentina and obtaining the authorisation of the SSN; or
  • participating as shareholders of an Argentine registered insurance company.

In both cases the prior authorisation of the SSN is required, in addition to registration with the relevant corporate authorities.

In order to obtain authorisation from the SSN to carry on insurance business in Argentina, the following requirements must be fulfilled:

  • Reciprocity: Foreign companies may be authorised on the basis that Argentine insurers are also allowed to carry on insurance business in the jurisdiction where the foreign insurer is incorporated.
  • Local representative: The company must appoint a local representative with sufficient powers to act in administrative proceedings before the SSN and in judicial proceedings.
  • Compliance with general regulatory requirements for insurers: See question 5.2.
  • Financial statements: The applicant must file its financial statements for the last five fiscal years and establish assets of a prescribed value in accordance with the minimum capital requirements in Argentina.

5 Authorisation

5.1 What authorisations are required to provide insurance services in your jurisdiction? What activities do they cover?

The main authorisations required to provide insurance services are:

  • incorporation and registration of a local corporate entity or branch with the local registry of commerce; and
  • authorisation to provide one or more types of insurance from the insurance regulator, the National Superintendency of Insurance (SSN).

5.2 What requirements must be satisfied to obtain authorisation?

The main requirements to obtain authorisation are as follows (Section 7 of the Insurance Companies Act):

  • The entity must be duly incorporated according to general law and the specific requirements of the Insurance Companies Act (and its regulations);
  • The exclusive corporate purpose of the entity must be insurance operations. Insurers may grant sureties or guarantees as long as such operations are economically and technically approved by the SSN as insurance operations;
  • The lines of insurance for which authorisation is sought must be specified in the application;
  • The entity must comply with the minimum capital requirements and the minimum duration requirements according to the specific line of insurance; and
  • The entity's insurance plans must be submitted for approval.

These requirements are regulated in detail under Section 7 of the General Insurance Regulation, as amended.

5.3 What is the procedure for obtaining authorisation? How long does this typically take?

The procedure involves filing a formal application with all relevant documents and evidence of compliance of all legal and regulatory requirements. The SSN may issue requests for information or observations to be remedied before authorisation is granted. The process typically takes between six and 12 months, but this will depend to a significant extent on the sufficiency of the application.

6 Regulatory capital and liquidity

6.1 What minimum capital requirements apply to insurance companies in your jurisdiction?

Each type of insurance cover has its own minimum capital requirements, which are defined in Section 30.1 of the General Insurance Regulation.

The minimum capital requirements are established under three different criteria for calculation, each of which sets a minimum. The criterion that results in the highest minimum capital standard will apply:

  • The first criterion is established under Section 30.1.1.1 of the General Insurance Regulation and provides fixed values for minimum capital requirements, currently ranging from ARS 13 million to ARS 130 million.
  • The second criterion is established under Section 30.1.1.2 and takes into account:
    • the total premiums issued in the last 12 months (net of cancellations); and
    • the total expenses incurred in the last 36 months (covering losses paid, adjustment costs net of recoveries and passive reinsurance).
  • The third criterion is established under Section 30.1.1.3 and establishes the minimum capital requirements in a similar manner, based on losses paid over the last 36 months.

The second and third criteria begin to apply as soon as an insurer has commenced operations, taking into account the term for which it has been active, until the 12 or 36-month period that conforms to the minimum capital requirement calculation criteria has expired.

6.2 What liquidity requirements apply to insurance companies in your jurisdiction?

The General Insurance Regulation sets out a detailed accounting regime covering:

  • the establishment of mandatory reserves and retentions in different situations; and
  • the types of instruments in which these reserved funds can be invested.

The liquidity requirements vary depending on the financial standing of an insurer, taking into consideration:

  • pending losses;
  • claims;
  • litigation; and
  • other factors.

7 Supervision of insurance groups

7.1 What requirements apply with regard to the supervision of insurance groups in your jurisdiction?

The Insurance Companies Act and the General Insurance Regulation have no specific provisions on insurance groups.

8 Reporting, governance and risk management

8.1 What key disclosure requirements apply to insurance companies in your jurisdiction?

Insurance activity is highly regulated in Argentina. The National Superintendency of Insurance (SSN), as the regulator, establishes very detailed and specific accounting, reporting and record-keeping requirements.

Certain key data on each authorised insurer is publicly available and easily accessible online.

Each insurance company is listed on the SSN's website, which states:

  • its corporate name and details;
  • the names of its directors and auditors, and the terms of their mandate; and
  • its shareholders and their equity.

It is also possible to access any company's quarterly financial statements.

8.2 What key reporting requirements apply to insurance companies in your jurisdiction?

The General Insurance Regulation contains several provisions that establish reporting and record-keeping requirements for insurance companies.

The main requirements relate to:

  • quarterly and yearly financial statements;
  • corporate approval of the financial statements;
  • the appointment of corporate authorities and auditors;
  • auditing and actuarial reports;
  • litigation (mediation proceedings and lawsuits);
  • losses and claims; and
  • reinsurance operations.

8.3 What key governance requirements apply to insurance companies in your jurisdiction?

The General Insurance Regulation provides a separate set of annexes under Section 9.1 containing a description of recommendations and governance requirements.

Annex 9.1.3 establishes the following main requirements:

  • Members of the board or corporate bodies must be proficient in the technical aspects of the insurer's activities and in high ethical standards, which in principle requires a clean record of administrative sanctions from the SSN or other government entities.
  • At least two-thirds of the members of the corporate bodies must have prior experience in the insurance or finance business, with a minimum of one member. The SSN recommends the establishment of a board or corporate body with five or more members, which should be periodically renewed.
  • The SSN may observe the appointment of a director/officer if there are questions regarding his or her eligibility.
  • One of the members of the board must be an independent director, with:
    • no commercial ties with the insurer other than those directly related to his or her activity as director; and
    • no personal interest or connection with the insurer's stakeholders.

8.4 What key risk management requirements apply to insurance companies in your jurisdiction?

The main provisions on risk management relate to:

  • the mandatory reserves and retentions that insurers must observe when faced with a claim, loss or lawsuit; and
  • the admitted investment options for reserved funds.

Pursuant to Section 37 of the General Insurance Regulation, an insurer must elaborate a set of rules on corporate procedures and internal controls, which also comprise its risk management policy. These rules must be approved by the SSN.

9 Senior management

9.1 What requirements apply with regard to the management structure of insurance companies in your jurisdiction?

See question 8.3.

9.2 How are directors and senior executives appointed and removed? What selection criteria apply in this regard?

Directors are appointed by the shareholders of the company. This decision is formally registered in the minutes of the shareholders' meeting in which the appointment is discussed and resolved.

Senior executives may be employed according to the general rules of employment law, without formal appointment by the shareholders or the board of directors. Some specific functions may require the formal corporate appointment of the person in charge, such as the general manager, controlling officer or customer service officer.

For more on this subject, please see question 8.3.

9.3 What are the legal duties of directors and senior executives of insurance companies?

The main responsibilities of directors are established in Annex 9.1.3 (Governance). Section 5 of the annex states that directors and officers are responsible for:

  • the execution of and compliance with the rules relating to reinsurance/retrocession;
  • the investment policy;
  • capital and reserves;
  • the subscription of risks;
  • the adjustment of losses; and
  • all reports and documents required by the regulator.

This enumeration of responsibilities is not exhaustive.

Pursuant to Section 59 of the Corporations Act, directors must act with good faith and carry the conduct of a good businessperson. Failure to comply with their obligations may result in unlimited liability for damages arising from their acts or omissions.

9.4 How is executive compensation regulated in your jurisdiction?

In general, companies and their officers are free to negotiate compensation.

The Corporations Act (19,550) establishes some general limitations for the compensation of directors/board members.

Their compensation is usually determined by the shareholders upon assessment and approval of the yearly financial statements. Pursuant to Section 261 of the Corporations Act, the compensation of directors must not exceed 25% of the profits for the fiscal year. This maximum is reduced to 5% when dividends are not distributed. However, under certain circumstances, these limits may be exceeded with the formal approval of the shareholders' meeting.

The Governance Good Practices Guide issued by the National Superintendency of Insurance provides that the compensation policy for executives should:

  • be in line with the insurer's subscription and risk management policies; and
  • not be dependent on short-term results.

With regard to labour compensation for officers enrolled as employees, the Insurance Union periodically negotiates compensation minimum standards and inflation adjustments with the chambers of insurance companies.

10 Change of control and transfers of insurance companies

10.1 How are the assets and liabilities of insurance companies typically transferred in your jurisdiction?

Pursuant to Section 46 of the Insurance Companies Act, mergers and full or partial portfolio transfers may be performed between authorised insurers only with the prior approval of the National Superintendency of Insurance (SSN).

The proposed agreement must be submitted to the SSN and a three-day public notice must be issued in the Official Gazette in order to notify insured parties, which may object to the execution of the merger or portfolio transfer within the following 15-day period (Section 47).

The SSN has a 30-day period in which to approve or reject the operation, if the interests of insureds are deemed to be insufficiently protected.

Depending on the economic parameters of the operation, formal notification of the Commission for the Defence of Competition may be required (see question 14.1)

Portfolio transfers may also occur where an insurer is forced to restructure its operations to meet minimum regulatory requirements, in which case the public notice procedure established in Section 47 of the Insurance Companies Act will not apply.

10.2 What requirements must be met in the event of a change of control?

See questions 10.1 and 14.1.

11 Consumer protection

11.1 What requirements must insurance companies comply with to protect consumers in your jurisdiction?

The Insurance Act establishes certain provisions protecting the insured party – for example, Section 11 provides that the insurance policy must be clearly written and be easily readable, which has led courts and authors to generally consider that ambiguous or obscure clauses must be construed against the insurer. In general, however, the protection of the insured as a consumer is not a key focus of the statute.

The absence of such provisions initially addressed through judicial interpretation. Since its enactment, the Consumer Protection Act (24,240) has also been applied in numerous judicial precedents in insurance law cases.

Even where matters are expressly established by the Insurance Act – such as the one-year time bar for legal action against insurers (Section 58) – consumer law has been applied as an alternative solution, extending this period to the three-year term specified in the Consumer Protection Act.

The main provisions of the Consumer Protection Act applicable to insurance claims are as follows:

  • Information: The consumer must be provided with clear and detailed information on all services/products.
  • Advertising: Offers made through public advertising are binding and their stipulations are regarded as part of the contract.
  • Respectful and dignified treatment of the consumer: This includes providing attention to claims, complaints and queries regarding the services/products.
  • Inapplicability of abusive terms and conditions: These are considered null and void
  • Punitive damages: Non-compliance with the Consumer Protection Act may result in the judicial application of civil monetary sanctions, in favour of the consumer. The maximum sanction applicable was recently updated from ARS 5 million to approximately ARS 336 million under a flexible standard based on life cost statistics published by the government,

With regard to consumer protection, the National Superintendency of Insurance (SSN) has:

  • issued a Manual of Procedures for Queries and Complaints (Resolution 464/2018); and
  • established a special division for the attention and guidance of insureds.

The complaints of insureds in some cases result in administrative proceedings against insurers.

11.2 What other measures has the state implemented to protect consumers in the insurance sector?

The SSN's Manual of Procedures for Queries and Complaints (see question 11.1) provides that insurers must provide customer service to insureds, appointing dedicated representatives for this purpose.

The contact details of these customer service representatives must be displayed on the website and at the commercial offices of the insurer. More recently, the SSN established that this information must also be included in all insurance policies (Resolution 279/2022).

12 Data security and cybersecurity

12.1 What is the applicable data protection regime in your jurisdiction and what specific implications does this have for insurance companies?

The general legislation on data protection is the Personal Data Protection Act (25,356), implemented by Decree 1558/2001.

This legislation applies to insurance activities, and many insurers are duly registered for the collection, archiving and treatment of personal data in accordance with the law.

The National Superintendency of Insurance has issued resolutions on brokers and intermediaries, making it mandatory for them to register with the personal data protection regulator; but we are not aware of any similar regulations applicable to insurers.

12.2 What is the applicable cybersecurity regime in your jurisdiction and what specific implications does this have for insurance companies?

In 2008, the Congress passed the Law on Informatic Crime (26,388), which modified the Criminal Code. This regulation has no direct or specific implications for insurance activity.

13 Financial crime

13.1 What provisions govern money laundering and other forms of financial crime in your jurisdiction and what specific implications do these have for insurance companies?

The government entity in charge of money laundering and terrorist financing is the Unidad de Información Financiera (UIF). This entity has general jurisdiction in its field of competence, which includes the insurance market. Therefore, insurers are subject to the inspection and record-keeping and reporting requirements supervised by the UIF.

In 2020, the National Superintendency of Insurance, as a supporting control entity under the Money Laundering Act (25,246), established a specific information regime for the insurance market in connection with money laundering and terrorist financing. This regulation was recently updated and replaced by Resolution 808/2022.

The applicable regime obliges insurers:

  • to monitor and report suspicious activity; and
  • to gather and crosscheck information relating to clients or prospective clients, their staff and representatives.

14 Competition

14.1 What specific challenges or concerns does the insurance sector present from a competition perspective? Are there any pro-competition measures that are targeted specifically at insurance companies?

The Competition Defence Act (27,442), which replaced Law 25,156 in 2018, regulates competition matters in Argentina.

The insurance market is highly competitive and we are not aware of any recent cases in which the competition regulator – the Comisión Nacional de Defensa de la Competencia (CNDC) – has issued any relevant decisions regarding insurance companies.

In some cases, operations relating to insurance companies which involve mergers or acquisitions, changes of control or other situations defined in the Competition Defence Act which may potentially result in concentration according to regulatory standards must be reported to the CNDC. Non-compliance may lead to the application of fines and may compromise the operation.

15 Restructuring and insolvency

15.1 What provisions govern insolvency in your jurisdiction and what specific implications do these have for insurance companies?

As regulated entities, insurance companies are not subject to the general insolvency legislation. The Insurance Companies Act establishes a specific liquidation regime (Sections 50 to 54).

Liquidation may:

  • be voluntary and involve a run-off process; or
  • occur as a consequence of an insurer having its authorisation to operate revoked by the National Superintendency of Insurance (SSN).

The SSN will apply the general rules for insolvency proceedings established in the Insolvency and Bankruptcy Act (24,522) (Section 52). These involve:

  • a general audit of debts and credits; and
  • a general call to creditors that have proportional claims to the final result of the liquidation, according to their privileges.

Insureds are granted a general privilege pursuant to Section 54, which prioritises life insurance.

The usual procedure involves the termination of insurance contracts in force, providing the insureds with 15 days' notice. Any losses which arise in the meantime must be covered by the insurer. In life insurance, a portfolio bidding process is carried out first, but the same process applies (ie, termination of insurance contracts) if the bidding process is unsuccessful.

In other situations which make a restructuring process necessary – such as non-compliance with the minimum capital or liquidity requirements – insurers may submit a restructuring plan, subject to the approval of the SSN. This plan may involve:

  • capital contributions;
  • mergers;
  • administration agreements with purchase options;
  • portfolio transfers; and
  • other measures to ensure that the entity complies with all regulatory requirements for its insurance activities.

16 Trends and predictions

16.1 How would you describe the current insurance landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms?

The Insurance Act and the Insurance Companies Act, which still constitute the backbone of the Argentine insurance regime, are quite outdated.

Many types of insurance cover and contractual clauses and practices have emerged in the market, together with new realities in terms of volumes and operational capabilities, which are not reflected in the main legislation.

Although many of these developments have been addressed by the National Superintendency of Insurance (SSN) as the regulator, the main legislation should be expanded and modified in some respects. This would not necessarily require further regulations and restrictions, but could rather provide for a freer market with more room of action for insurers and clearer, up-to-date rules for insurance contracts.

Although in recent years the SSN has executed memoranda of understanding with the regulators in other jurisdictions, and there have been a few legislative projects in Congress for partial modifications of the Insurance Act and the Insurance Companies Act, we do not expect general reforms in the short term.

17 Tips and traps

17.1 What are your top tips for insurance companies operating in your jurisdiction and what potential sticking points would you highlight?

The local insurance market offers a variety of coverage tailored to specific technical environments, with different commercial and operational realities.

However, we have found in our practice that it is essential for insurers in general to establish a solid technical team for the analysis of large risks and the assessment and adjustment of important claims and losses.

Foreign reinsurers admitted by the National Superintendency of Insurance are key and powerful allies in the support of the local insurance market.

The recent years of economic turmoil (including as a result of the COVID-19 pandemic) have resulted in high inflation and evolving foreign exchange policies. This scenario has proved challenging for insurers, but has been full of great opportunities as well as pitfalls.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.