Chile’s monetary companies regulator CMF has amended the strategy that life insurers use to calculate asset adequacy and technical reserves.
The adjustments, CMF mentioned in a press release, apply to corporations that function within the annuity area and are designed to help insolvency threat administration and convey guidelines according to worldwide greatest observe.
Within the first quarter of 2020, the life insurance coverage section similar to pension-related merchandise corresponding to annuities contracted year-on-year. Direct premiums fell 23.6% to US$931mn. General, life insurance coverage direct premiums fell 13% to US$1.663bn.
Towards a backdrop of decrease rates of interest through the interval, a development was seen of retiring staff selecting phased-withdrawal plans – these provided by their pension fund supervisor – over annuities.
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