The Ecuadorian government has recently passed a new insurance regulation (“Normas Relativas a las operaciones de Reaseguros y Retrocesiones”, 26 March 2015) that directly affects pooling and captive arrangements in the country.
This regulation requires local insurance companies to retain 95% of the business and of the risk locally. To this end, local insurers are now requested to lower their level of reinsurance with foreign reinsurers to 5%. As a consequence of these restrictions, GEB will no longer be in the position to reinsure the local risk signed in Ecuador and include it in your global arrangement.
We have been investigating exceptions for GEB to obtain special reinsurance conditions from the local regulator. For the time being, however, we have to confirm that, along with other global insurers, we must suspend reinsurance activities from Ecuador.
Please note that we will continue to monitor your local policies and include this information in the reports that you receive from the GEB Network. We will continue to work closely with our local insurer, the wholly owned subsidiary Generali Ecuador, to best support your operations in Ecuador.