Superintendent of Insurance defined in the policy settings. Although the Insurance Activity Act is in effect, changes in coverage policies shall take effect when the Insurance authorize adjustment plans of the companies. According to the text, firms must change the terms of contracts and may not refuse to cover emergency cases, not set limitations access and should include pre-existing conditions.
President executive Insurance Chamber Venezuela (CAV), Alesia Rodriguez, says that companies have 60 days to submit plans to the agency, but said that "there are several points to define the products: the characteristics required, whether they are sustainable and can answer technical coverage. " He says that while the settings are not defined "existing contracts remain valid, because this law is not retroactive."
regard to the costs that will have the products, the president of the Organization notes that "we are in an inflationary economy and price behavior as well as the influence claims costs. "He believed in the instrument there is too much discretion, especially in the setting of prices of insurance policies.
The Insurance Activity Act states that the supervisory body will bring new risks to be covered, such as agricultural cooperatives and those of the popular community. Rodriguez points out that these are issues to be clarified in the adjustment program.
The new legal framework that regulates the insurance industry sets out conditions to funding of premiums, so that those who opt for the scheme's funding policies can no longer use the contracts as collateral. The president of the Chamber of Insurance indica, sobre ese aspecto, que "con la restricción de usar la póliza como garantía el proceso de financiamiento será lento, los análisis de ahora en adelante serán más rigurosos".
Seguros iniciaron adecuación a Ley de la Actividad Asegudora .
La Cámara de Aseguradores de Venezuela informó que las empresas iniciaron su proceso de adecuación a la Ley de la Actividad Aseguradora, la cual establece cambios en los servicios y productos. La presidente ejecutiva de la organización, Alesia Rodríguez Pardo, indicó "The law provides that each insurer has 60 days to present its plan to adjust to the Superintendent of Insurance Activity. Once approved, insurance companies have a period of six months to implement this plan."
However, he stressed that the new law presented "a number of inaccuracies with legal implications, operational and financial, is therefore expected that these questions in the process be clarified when discussing and publish the relevant prudential standards and relevant regulations."
exchange for payments are delayed for reinsurance.
The insurance industry faces difficulties access to official foreign exchange, and this is affecting the payments must be made to reinsurance companies.
According to figures from the Foreign Exchange Administration Commission (Cadivi), insurance companies in the first half of 2010 was allocated $ 47.7 million, 37% less than in 2009 when they gave $ 76 million . These delays affect the coverage of certain claims and especially the catastrophic (flooding, earthquakes, etc.), whose allowances are generally expensive. Are reinsurance companies that pay them the insurance companies so that they are responsible to cover some of the risks. Sources
the insurance industry point out that since last year there are delays in disbursements and in this period the situation has worsened, so reinsurance are asking for some companies, which are renewed contracts to use their own funds to cover the premiums.
Barriers.
In the process of handling foreign exchange, insurance must present a petition to the Superintendent of Insurance, and once the institution gives its opinion, explains the procedure to Cadivi. The sources point out that delays are occurring mainly in the supervisory body, because the reporting requests takes to approve.
companies perform two types of payments to reinsurance. For contracts covering risks in general companies, cancellations of premiums are quarterly, and catastrophic risks are annual payments. In relation to catastrophic risks, sources say that reinsurance give a period of 120 days for cancellation, and if it does not materialize during this period is suspended coverage.
When the landslide occurred in Vargas State in 1999, the awards, given its size, were assumed by reinsurers. Companies attended the reinsurance claims and then gave the funds.
Other effects
The insurance industry sources suggest that delays in foreign exchange are also affecting the other services provided by companies. They add that there is slowness in disbursement to the automotive industry is affecting the responses of the vehicle policy.
technical profit fell insurers.
The Insurance Chamber of Venezuela reported that, despite growth of 48.8% who had earnings in the first half of 2010, referred to the technical utility performance insurance activity declined. In the first quarter totaled 159 million, 47% less compared to 300 million in the same period in 2009. The increase in claims, the impact of inflation in the prices of the services covered by policies and the lag in updating the prices are among the main causes of the decline in technical utility.
Statistics from the Superintendent of Insurance Activity, at the end of the first half, they confirm that expenses are growing faster than revenues. Total claims increased 24.5% in 12 months, while the premiums collected went up 16.9%. The situation worries the union. "Although technical utility is still positive, there has been a significant decline in recent years. We warned that there are classes to companies that generate a continuous technical losses, such as individual health policies, "said Alesia Rodriguez, chief executive of the camera.
Gain
necessary. Rodriguez said that insurance companies is essential to positive results, because it strengthens their heritage and their responsiveness to users. "The insurance business is risk management. Therefore, companies must maintain a solvency and profitability to enable them to face it. "Environment of high inflation and business growth also make it necessary to maintain a good financial performance. "The financial strength of companies is the true guarantee of the insured."
said that Venezuelan insurance companies are strengthened from that point of view, but warned that the provisions of the Insurance Activity Act will generate a negative effect. "These are additional expenses that the legislation will bring."
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