FIDES Report 2014-2015

Page 1




Contents 08

FIDES 70 years

10

An entity dedicated to advocacy and private insurance development

12

Mission

14

Hemispheric Conferences and inauguration of Presidents

16

Organization

18

Timeline

20

Ibero-American Market

22

FIDES World

24

Revitalization of the website

28

Microinsurance: Articles available online

30

Consultations

32

Microinsurance Project BID-Fomin-FIDES

24 52


Agricultural Insurance Project

34

for Latin America

48

Consumer Protection Regulation

35

Microinsurance Regulation

35

Consumer relationship

36

New adherent members

40

Working Groups

42

Research on the United Nations

46

New Guidelines on Consumer Protection Book of FIDES history

47

Publication – Revista de Seguros

48

Insurance Schools Network

50

FIDES Award

52

International Partnerships

56

International Relations

60

List of Active and Adherent Members | 2015

62

47


Cover letter

I

n compliance with historic guidelines that motivated its creation, FIDES has been performing over the years several actions to position the insurance industry as a strategic allied of the regional growth. We believe that,

the more fostered, the insurance activity is the most qualified to transform, crosswide and immediately, the economic reality of the countries. The main role played by the insurance industry is to support industries, trade and families, ensuring the continuity of business and income at times of misfortune or weakness. Therefore, we contribute to overcome vulnerabilities that threaten the health, life and economic stability, which make us a first hour partner of the social welfare. The insurance industry also contributes to increasing the domestic savings of the countries and to reducing the effects of the slowdown the region has been facing in this decade, by means of the institutional role it plays, by allocating part of its funds to financing governments and companies through the purchase of bonds and securities. The products diversification, technologic updating, and best qualified sales are some of the recurring topics of our agenda, because we share a dream: to make the insurance protect every citizen and the assets they accumulate throughout life. This inspires our actions. And there are several examples, such as the redesign of the website of FIDES, that contributed to improve and make the exchange of information easier amongst our associates; the publication of the book of FIDES history;


the mapping of the consumer protection laws in the member countries and the commitment to the quality of services provided, ratified by the FIDES Letter of Commitment with the Interamerican Insurance Consumers, with adherence of its terms by the associates and affiliated insurers. Aiming at improving services and products, it is worth noting the reactivation of FIDES working groups, seeking to promote the exchange of experiences and to disseminate the good practices in insurance. And, also, the participation in high-level debates held in the annual assemblies of the Global Federation of Insurance Associations – GFIA, about financial inclusion, catastrophic risks and rules of investment. In the regulation field, it is worth highlighting the FIDES proactivity, by attending meetings such as the ones held by the International Association of Insurance Supervisors – IAIS, at the global level, and by the Asociación de Supervisores de Seguros de América Latina – ASSAL, at the regional level, in order to discuss principles that contribute towards accomplishing an enabling regulatory milestone for market development all over the countries in the region. As a result, we have been attending, since 1999, the annual conferences promoted by the two entities that bring together the supervisors. Globally, even though we recognize the relevance of the risk-based regulation, the Solvency II, we have claimed to its gradual adoption, respecting the markets ability to fulfil deadlines, both in quantitative and qualitative aspects provided for in such regulation.


Although relevant, such actions do not exhaust the universe of our working agenda and of the new regional challenges. The planet is already feeling the effects of climate change, and our industry is strategic to mitigate such effects on the economic activities. With that in mind, FIDES has become a supporter institution to the Principles for Sustainable Insurance, of the United Nations Environment Programme Finance Initiative, undertaking the commitment to disseminate the importance of considering the environmental, social and governance issues in the insurance operations. The region, after exuberant growth in the past decade, is back to coping with economic slowdown or retraction, a scenario that always increases the inequality and impacts, more rigorously, the poorest. The microinsurance, stimulated by FIDES, is the response to mitigating the risks of falling back into absolute poverty. It is not by chance that, since 2009, with the IDB / MIF support, FIDES has been leading the microinsurance development project in the region, fostering the creation of new products in the countries of Latin America. FIDES believes, however, that the crisis will be temporary, and that it may present opportunities. An example of this is the incentive to increase the technologies available to the consumers and new channels to provide access to insurance, which requires changes in the regulatory milestones. The modernization of the regulation is, in fact, the reason to many of our meetings with representatives of the supervisory bodies. The reduced per capita consumption of insurance is the sign that many actions still need to be performed. But we have already taken decisive steps to reaffirm


our importance, which may be proved by the return to society, through claims payments, private pension benefits and capitalization rescues. And FIDES is protagonist in such effort to strengthen the insurance industry, extending significantly the protection against risks of companies and people.

Marco Antonio Rossi

RaĂşl De Andrea

President

Secretary General


8


brings together 16 Latin American countries, as well as the United States and Spain FIDES currently brings together 16 Latin American countries, as well as the United States and Spain. The conferences are held every two years and constitute a discussion forum about issues related to insurance and its socioeconomic role in each of the member countries and regions. The institutional formalization of the Hemispheric Insurance Conferences, and the drafting of the first statute occurred in the so-called Letter of Colombia, in 1967, when the ten basic principles of insurance were adopted, which would serve as a guide to action for private insurance organizations in each of the member countries. Over its 70 years of existence, the supporting pillars of the institution have become stronger and continue to be a solid basis of integration encouraging the common development of all member countries.

70years of existence


An entity dedicated to advocacy and private insurance development 10


T

he Inter-American Federation of Insurance Companies – FIDES is a non-profit organization that encompasses private insurance associations from Latin America and

the Caribbean Region, as well as from the United States and the Iberian Peninsula. Its history began to be written in 1946, with the 1st Hemispheric Insurance Conference, convened by the initiative of the United States and held in New York. Yet, its current name was set up only in 1973 at the suggestion of Mexico, one of the associated countries, based on the meaning of the latin word ‘FIDES’, which stands for faith, trust, belief, credibility. FIDES plays an active role in the development of the insurance industry in Latin America, hosting more than 2,000 insurers ( excluding USA and Spain ), which constitute the market in the region, providing support to the affiliated associations and stimulating relevant projects for the development of insurance business. It also proposes solutions for current and prospect issues related to

CURIOSITIES The denomination of ´FIDES´ is based on the latin word that stands for faith, trust, belief, credibility.

the insurance industry, and it is in charge of training and generation of information, globalization and multilateral integration areas. During the Hemispheric Insurance Conferences, issues specific of member countries or common to all are previously studied and analyzed by working groups and discussed subsequently in the events, resulting in technical guidelines and recommendations issued in statements.

2.000 insures

integrate the market in Latin America 11


To represent the private insurance of the Americas and the Iberian Peninsula before the authorities and organizations.

To promote the spirit of service of private insurance within the companies of Americas and Iberian

To stimulate the growth of the private insurance and reinsurance.

Peninsula, as well as its public image.

MISSION To sponsor the creation of research and study centers of insurance, reinsurance and related matters, as well as the organization of courses and seminars to improve the qualiďŹ cation of leaders, oďŹƒcers and employees of the activity, in national, regional and

7

international levels.

8

To further standardize statistical information systems and the legislation regarding the technical aspects of the insurance activity.

To cooperate, from its speciďŹ c area, with global economic development, creating ties with public or private, national or international organizations.

9


To promote the diffusion and compliance with To advocate the private initiative system through the responsible exercise

ethical, technical and legal standards that are inherent to the insurance and reinsurance.

To narrow the ties amongst members of the Federation, promoting the exchange of ideas and experiences.

of freedom.

The FIDES Mission highlights the goal of full development of the insurance industry and the importance of integration among the member countries.

To carry out the required measures to oppose all acts that jeopardize the interests of associated companies, whenever To establish and

requested by a member affected

To perform other

maintain relationship

by such acts, and explicity

convenient or

with its counterparts

announce its stance regarding

beneficial acts for the

in other continents.

the subject-matter, whether

best fulfillment of

individually or collectively.

its goals.

13


Hemispheric Conferences and

14

Number

Year

City | Country

i

1946

New York | United States

II

1948

Mexico City | Mexico

III

1950

Santiago de Chile | Chile

IV

1952

New York | United States

V

1954

Rio de Janeiro | Brazil

VI

1956

Buenos Aires | Argentina

VII

1958

Caracas | Venezuela

VIII

1961

Lima | Peru

IX

1963

Mexico City | Mexico

X

1965

Bogota | Colombia

XI

1967

New Orleans | United States

XII

1969

Vi帽a del Mar | Chile

XIII

1971

Asunci贸n | Paraguay

XIV

1973

Buenos Aires | Argentina

XV

1975

San Salvador | El Salvador

XVI

1977

Santo Domingo | Santo Domingo

XVII

1979

Rio de Janeiro | Brazil

XVIII

1981

Acapulco | Mexico

XIX

1983

San Francisco | United States

XX

1985

Panama City | Panama

XXI

1987

Asunci贸n | Paraguay

XXII

1989

Buenos Aires | Argentina

XXIII

1992

Madrid | Spain

XXIV

1993

Cartagena | Colombia

XXV

1995

Washington | United States

XXVI

1997

Mexico City | Mexico

XXVII

1999

Panama City | Panama

XXVIII

2001

Lima | Peru

XXIX

2003

Punta Cana | Dominican Republic

XXX

2005

Caracas | Venezuela

XXXI

2007

Guayaquil | Ecuador

XXXII

2009

Las Vegas | United States

XXXIII

2011

San Pedro Sula | Honduras

XXXIV

2013

Antigua, Guatemala

XXXV

2015

Santiago de Chile | Chile


inauguration of Presidents Inaugurated President

Country

Jorge Bande

Chile

Jorge Bande

Chile

Jorge Bande

Chile

Jorge Bande

Chile

Jorge Bande

Chile

Jorge Bande

Chile

Jorge Bande

Chile

Jorge Bande

Chile

Oscar Barahona

Guatemala

Oscar Barahona

Guatemala

Jaime Bustamante

Colombia

Jaime Bustamante

Colombia

Guillermo Mascarenhas

Argentina

Guillermo Mascarenhas

Argentina

Juan Riveroll

Mexico

Juan Riveroll

Mexico

Ernesto Townson

Guatemala

William Phelan

Venezuela

William Phelan

Venezuela

Clinio Silva

Brazil

Clemente Cabello

Mexico

Rufino Garay

San Salvador

Rufino Garay

San Salvador

William Fadul

Colombia

William Fadul

Colombia

Francisco Serqueira

Chile

Alfonso Castro

Mexico

Carlos Rabat

Panama

Juan Manuel Peña

Peru

Roberto Sollitto

Argentina

Augusto Salame

Ecuador

Enrique Rodríguez

Guatemala

Gonzalo Lauria

Venezuela

Marco Antonio Rossi

Brazil

Pilar González de Frutos *

Spain

(*) The President of UNESPA will take office at the XXXV Hemispheric Insurance Conference

15


Organization T

he president of FIDES is elected every two years by an Ordinary General Assembly, following a rotation system in alphabetical order, in accordance with the geographic

region. The position is currently chaired by the Brazilian member Marco Antonio Rossi. There are four regional presidents, distributed as it follows: North ( North America and Iberian Peninsula ), Central

( Central America, Panama and the Caribbean ), Andean ( Bolivia, Colombia, Ecuador, Peru and Venezuela ) and South ( Argentina, Brazil, Chile and Paraguay ). The entity also counts on a Secretary General to manage its duties and activities.

The statute establishes the nature of two kinds of members: active and adherent, defining rights and duties of the active members; rights of the adherent members; and responsibilities and duties of both.

According to the statute, the president of the entity for the previous term is member of the Presidency Council – currently Gonzalo Lauría ( Venezuela ), who preceded Marco Antonio Rossi. The organization of FIDES is the following: the General Assembly ( main authority ), held annually; the Presidency; the Presidency Council; the Regional Commissions; the Standing Committees; and the General Secretariat. The statute establishes the nature of two kinds of members: active and adherent, defining rights and duties of the active members; rights of the adherent members; and responsibilities and duties of both.

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PRESIDENCY COUNCIL

President Marco Antonio Rossi Brazil

Former President Gonzalo Lauría Venezuela

Secretary General Raúl De Andrea Peru

First vice president and president of the South Regional Commission

Second vice president and president of the North Regional Commission

José Manuel C. Larraechea

Recaredo Arias

Chile

Mexico

Third vice president and president of the Central America and Caribbean Regional Commission

Fourth vice president and president of the Andean Regional Commission

Leonel Argüello

Venezuela

Nicaragua

Alesia Rodríguez Pardo


Presidency Council and General Assembly XXXIV Hemispheric Conference

Antigua Guatemala Guatemala

Presidency Council November 11th Ordinary General Assembly November 12th

2014

Timeline

2013

18

Asunci贸n Paraguay

Presidency Council Abril 22nd


General Assembly approves new members of the Presidency Council 2014 -2015 President

Marco Antonio Rossi | Brazil

1st Vice President and President of the South Regional Commission

José Manuel C. Larraechea | Chile

2nd Vice President and President of the North Regional Commission

Recaredo Arias | Mexico

3rd Vice President and President of the Central America and Caribbean Regional Commission

Leonel Argüello | Nicaragua

4th Vice President and President of the Andean Regional Commission

Alesia R. Pardo | Venezuela

XXXV Hemispheric Conference

Santiago City Chile

Mexico City Mexico

Presidency Council Annual Meeting Novembro 12th

2014

2015 Mexico City Mexico

Presidency Council May 7th

Presidency Council October 26th Ordinary General Assembly October 27th

2015

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Ibero-American Market in Numbers | 2014 Country

Population (millions)

GDP

(billions)

Premium (millions)

Premium per capita

Insurance / GDP

Number of companies in the sector

United States

318.7*

17,430*

1,280,443*

4,017*

7.3%*

6,115

Brazil

203.4

2,180*

139,488

685.5

5.9%

1,385

Spain

46.7

1,407*

74,417

1,592

5.3%

362

120.2

1,281*

26,238

231

2%

88

Venezuela

30.2

625

23,403

751

3.6%

48

Argentina

42.6

528*

13,391

313.8

3.2%

180

Chile

17.8

258*

10,246

575

4%

63

Colombia

47.6

380*

9,519

199.7

2.5%

45

Peru

30.8

203*

3,401

110

1.7%

18

Ecuador

15.9

102*

1,703

107

1.8%

35

Panama

3.9

44*

1,343

345

3%

30

Costa Rica

4.9

50*

1,167

238.2

2.3%

13

Guatemala

15.8

59*

762

48.2

1,3%

28

El Salvador

6.4

25.2**

623

97.3

2.5%

22

10.4

34.2**

417

40.1

1.4%

14

Paraguay

6.8

30.9**

400

59

1.3%

34

Nicaragua

6.2

11.8**

177.4

28,5

1.5%

5

Honduras

8.1

19.4**

97

12.1

0.5%

11

936.4

24,668.5

1,587,235.4

1,695

6.4%

8,496

Mexico

Bolivia

Total US$


Sources: Associate Members *Sigma # 4/2015 ** World Bank website

21


FIDES WORLD

The presidency of Marco Antonio Rossi was marked by a series of actions and initiatives that gave more importance and dynamism to the work of the entity by defending the interests of the insurance industry in Latin America and the Caribbean Region. Find out more about the main initiatives:

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Revitalization of the

WEBSITE The redesign of the new website of FIDES, concluded in April 2014, made the virtual environment more dynamic, while providing faster navigation and modern visual effects.

T

he space now is an online platform for disseminating several topics of interest of the new socioeconomic context in Latin America. In addition to promoting the exchange

of information, the website also started receiving enquiries and services related to insurance. Nowadays, the environment is a regional reference in insurance, offering information and statistics about all member countries; news published by international associations and experts; studies and articles; material generated daily by members of FIDES and the Institute of High, Financial and Insurance Studies in Spain - Inese; and the list of events held by the associations and third parties. The website also provides the regulatory milestones of the member countries and consultation links.

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Visit FIDES’s website using the QR Code


After the website redesign, new partnerships were formed to include advertising spaces. The sponsors ( Bain Co. And Accenture)

generate additional revenue for the Federation while providing relevant content to the page. The new website was launched during the Presidency Council meeting, held in Asunción, Paraguay, in April 2014, and since then a significant number of visitors has been registered. In January 2014, when Marco Antonio Rossi took over the Presidency of FIDES,

Visits

Views

Users

26

2014

578

2015

1.458

2014

2.451

2015 2014 2015

4.487

478 2.124

Increase in the number of visits in relation to January, 2014.

Increase in the number of users in relation to January, 2014.

152%

344%


the website registered 578 visits and 2,451 views. In July 2015, after its redesign, the number of visits increased by 152 %, reaching the figure of 1,458 visitors. The number os users jumped from 478, in 2014, to 2,124, in 2015 – an increase of 344%. One of the secrets for the success registered in the virtual environment is the extent of information available and its continuous updating. On the website tabs, it is possible to access a wide range of data, themes and documents.


MICROINSURANCE

Articles available

El crecimiento de los microseguros en América Latina by Craig Churchill, Team Leader of the Microinsurance Innovation Fund.

28

Seguros para Consumidores de Bajos Ingresos

Microinsurance: A risk management instrument with many facets

by Dirk Reinhard, vice president of Munich Re Foundation.

by Véronique Faber, executive director of Microinsurance Network.

Apoyo a un mayor acceso a los seguros por medio de supervisión adecuada by Peter van den Broeke, a member of the Secretariat of IAIS.


The website of FIDES also provides a number of other publications of interest for the insurance market, both by members of the entity and by third parties.

A digital version of the special issue of Revista de Seguros about FIDES published by CNseg is also available online (see page 48). Among the titles available on the website, the following articles published by experts with a special focus on microinsurance deserve attention:

The first step to meaningful microinsurance: research by Anna Gincherman, Women’s World Banking.

El desafío de la Longevidad by Hernán Poblete Miranda, executive director of IMR Investigation Consultancy, specialized in strategic communication.

Microseguros en Latinoamérica by Michael J. McCord, president of MicroInsurance Centre.

Microinsurance and financial inclusion by Andrea Keenan, senior managing director of AM Best and vice president of Microinsurance Network.

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Reinsurance Taxes Federación Ecuatoriana de Empresas de Seguros – Fedeseg

Mandadory Traffic Accident Insurance – SOAT Asociación Guatemalteca de Instituciones de Seguros – AGIS

Financing Modalities Associación Peruana de Empresas de Seguros – Apeseg

Mandatory Contribution to the Fire Department Asociación Argentina de Compañias de Seguros – AACS

Consultations made in 2014

Consultations FIDES has been promoting the regional development of the market, through a process of consultation to exchange information among its members. The great advances within the scope of the website of FIDES also include the consolidation of this consultation process by the entity. The exchange of information, experiences and good market

Consultations made in 2015 Stimulus or incentive plans to the sales force

Accounting of Technical Reserves

Cámara de Aseguradores de Venezuela – CAV

Federación de Aseguradores Colombianos – Fasecolda

Fees for advanced reimbursement of Life Insurance

The Impact of Health and Accident Insurance in Public Health Systems

Associación de Aseguradores de Chile – AACH

Asociación de Aseguradoras Privadas de Costa Rica – AAP


Portfolio coverages for Credit line insurance Cámara Hondureña de Aseguradores – CAHDA

Collateral for Technical Reserves Confederação Nacional das Empresas de Seguros Gerais, Previdência Privada e Vida, Saúde Suplementar e Capitalização – CNseg

Regulation for insurance sales by phone Asociación Argentina de Compañias de Seguros – AACS

The issue that most concerns insurers and associations in each market Confederação Nacional das Empresas de Seguros Gerais, Previdência Privada e Vida, Saúde Suplementar e Capitalização – CNseg

practices, which aims at strengthening the insurance segments and the associations of member countries, have undergone significant improvements to strengthen the relationships between distinct insurance markets in the region. From February 2014 to September 2015, 15 consultations were made by associations of the member countries of FIDES. The themes address a series of topics of interest for the market, and the results consolidated by CNseg are available on the FIDES website ( www.fideseguros.com ).

Insurance Normativeness regarding Transparency and Anti-Corruption Asociación Mexicana de Instituciones de Seguros A.C. – AMIS

Taxes on Equity Increase from any kind of act or agreement the domain of which is acquired free of charge

Rules on mandatory or optional investments Asociación de Compañias de Seguros del Ecuador – Acose

Federación Ecuatoriana de Empresas de Seguros – Fedeseg

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Microinsurance Project

BID-Fomin-FIDES

T

he Microinsurance program for Latin America, which emerged in late 2009, a result of an alliance between FIDES and the Multilateral Investment Fund - MIF, was an important initiative

for the countries involved to enhance microinsurance products penetration among low-income people. The purpose was to foster the development and creation of products through different plans and initiatives in six countries. The insurers were invited to join the program and present their projects through an international competition attended by judges and experts from several institutions, who selected ten pilot projects — each of them received US$100,000 to create new products and help the insurance market development within the region. Furthermore, the associations invested up to US$75,000 in programs that also promoted market growth. The association and companies that joined the program, concluded in 2014, are the following: AGIS ( Guatemala ), AMIS ( Mexico ), APESEG ( Peru ), CAV ( Venezuela ), FASECOLDA ( Colombia ), CNseg ( Brazil ), Seguros

32


Atlas, Grupo BB e Mapfre, Mapfre Seguros, Protecta Companhia de Seguros, La Positiva Seguros, Positiva Companhia de Seguros, Rural Seguradora and Zurich. The initiative achieved all the goals proposed: nine projects were implemented — almost twice the five initially presented — and 37 microinsurance products were created in different countries. One of the main lessons learned from the project was the need to create innovative and alternative distribution channels. On November 13th, 2014, the last meeting by the Board of Directors of the Microinsurance Program was held in Mexico City and chaired by Recaredo Arias. The Program was officially closed after a presentation by each of the following country: Brazil, Colombia, Guatemala, Mexico, Peru and Venezuela.


Agricultural Insurance Project

for Latin America

O

ne of the factors that jeopardizes the potential for economic growth in Latin America and the Caribbean Region is climate change. According to the warning

from global organizations, the two regions are among those

with high vulnerability to climate change effects, due to their geographical characteristics and lack of public policies to tackle natural phenomena. This finding led to the creation of a project, the purpose of which is to promote the development of agricultural insurance products and the creation of innovative instruments in the following countries: Peru, Mexico, Uruguay, Colombia and Honduras. Run by APESEG ( Peru ), the project is the result of a partnership between World Bank and FIDES. The conclusion of studies carried out by the five countries have generated promising results.

BM – FIDES

34


Consumer Protection

Regulation

T

T

he Consumer Protection Working Group has conducted the project of

consolidating consumer protection laws applicable in member countries, which are available at the FIDES website.

he Consumer Protection Working Group has consolidated

microinsurance milestones applicable in member countries. The microinsurance milestones from Argentina, Bolivia, Brazil, Colombia, Honduras, Peru and Venezuela are available on the FIDES website.

Microinsurance

Regulation


CONSUMER

RELATIONSHIP Commitment to quality of services


I

n order to formalize the commitment by the affiliated associations and insurers to establish a quality standard of the services provided to insurance consumers, FIDES — following CNseg’s initiative — drafted

the Letter of Commitment with Good Practices in the Relationship with Inter-American Insurance Consumers. The members of the associations committed to broadcast the letter in their respective countries and to outline a plan of action to diagnose the current scenario of insurance consumer relations. The broadcast of the document intends to disseminate a better perception of the industry by society and to raise awareness about the importance of insurance protection. This Letter of Commitment has become the Declaration of Mexico City, approved and signed by the Presidency of FIDES and its other members in November 12th, 2014. The full Letter with the premises that guided the establishment of the three core commitments is as follows.

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Letter of Commitment

with Good Practices in the Relationship with Inter-American Insurance Consumers Declaration of Mexico City “ The insurance companies and institutions members of the Inter-American Insurance Federation – FIDES, gathered in Mexico City, considering that the insurance industry is an indispensable component of national economies because of its strategic role in the sustainable development of industry, trade and society itself; considering that the insurance institution permits the overcoming of acute vulnerability gaps which affect the health, safety and economic stability of citizens in developing regions; and, also, considering the whole process of inclusion of new policyholders and the importance of cooperation and responsibility in the implementation of public policies to promote society’s development with balance, legal certainty, transparency and trust; and in light of the commitment to the sustainable progress of insurance as a fundamental cornerstone of social and economic development of the region, sign this Letter of Commitment with Good Practices in the Relationship wtith Inter-American Insurance Consumers, in order to:

1. Recognize the importance of access to information, guidance and education of the insurance consumer and, therefore, express the commitment to advance and enhance existing mechanisms and thus establish a more transparent and balanced relationship, that ensures freedom of choice and decision of the insurance consumers;

2. Reaffirm the importance of attending the needs of insurance consumers, with the improvement of channels and procedures for service and relationship, empowering and promoting trust between insurers and insurance consumers; and


3. Take on a firm commitment to prevent commercial practices that may offend or violate existing rules for the protection of insurance consumers, in accordance with national standards, thus contributing to the existence of a local and regional market that has more quality and is more healthy and balanced to insurers and insurance consumers. This Letter of Commitment with Good Practices in the Relationship with Inter-American Insurance Consumers does not eliminte, disminish or mitigate the effects of the application of the existing international or national level regulations in respective member countries, that establish standards and mechanisms for the protection of consumer rights. The insurance activity is regulated by the States and this Letter of Commitment with the Good Practices in the Relationship with Inter-American Insurance Consumets is also an expression of responsibility, commitment and respect to the regulations by Inter-American agencies and authorities of the industry. The monitoring of the commitments taken on the Letter will be carried out through an agenda called “Inter-American Insurance Consumers Agenda�, of permanent nature, which shall conduct periodical reviews of the progresses, challenges and priorities for Inter-American insurance consumers rights, in a framework of balance, transparency, cooperation and building of trust in the relationship between insurance institutions, consumers and their national states.�

Mexico City, November 12th, 2014

Marco Antonio Rossi President


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New adherent

members

Four new reinsurers have become members during the current management

D

uring the biennium of Marco Antonio Rossi presidency ( 2014 -2015 ), four new adherent members have become part of FIDES: Terra Brasis Resseguros, IRB Brasil Resseguros, Markel Resseguradora and Echo Re.

The Presidency Council granted the provisional authorization for the four reinsurers at a meeting held in April 2014. The decision was ratified at the General Assembly held in November of the same year, in Mexico City. Reaseguradora Patria, a Mexican company, had already been accepted at the Assembly held in November 12th, 2013, in Guatemala. Thus, the total of adherent members of FIDES are nine.


Working

42


Groups The goal is to promote exchange of experiences and to disseminate good practices in insurance

T

he revitalization of Working Groups - WG aims at evaluating and commenting, collegially and frequently, the topics of greatest interest to the market.

Five working groups were established ( Mass Insurance, Consumer Protection, Financial Education Initiatives, Reinsurance and Solvency – former Risk-Based Capital ), which were proposed at the 2013 Assembly, in addition to the Regulation WG, which was proposed by the Cámara Hondureña de Aseguradores - CAHDA. The activities of the Consumer Protection and Solvency Working

Visit FIDES’s website using the QR Code

Groups have already started. Up to August 2015, four conference calls were held, with the attendance of 7 members at each meeting (on average). The minutes of the meetings of such two Working Groups are available on the FIDES website: www.fideseguros.com.

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WG Consumer Protection Consolidation of consumer protection regulatory milestones and disclosure on the website of FIDES. Production of questionnaire for diagnosis of the major complaints submitted by insurance consumers in the member countries of FIDES; Drafting of circular to the members of FIDES recommending the disclosure of the Letter of Commitment with the Inter-American Insurance Consumers in the media and oďŹƒcial agencies of each member country. Suggestion to provide roundtable during the FIDES Conference, in which every association would submit its consumer protection program, with priorities, present projects, codes of conduct and good practices.

44


WG Solvency Presentation of the report “Insurance Regulation in Latin America: modernizing at varying speeds”, drafted by Swiss Re. The report found that countries in the region develop in very different rhythms in relation to the theme: some of them more rapidly and others shyly. Development of maps of the solvency regimes in the member countries of FIDES. The Group developed a questionnaire that takes into account the large numbers of each market, the proximity of the national regulatory agency to IAIS, the existence of an implementation plan of a risk-based solvency regime and the similarity with the European Solvency II, quantitative and qualitative requirements and market discipline mechanisms.

45


Research on the United Nations New Guidelines on Consumer Protection

F

IDES and LIMRA joined in 2015 to perform a study to benefit their aďŹƒliates with strategic information of global importance. This partnership started with the research on a theme of

substantial importance to our industry. For the first time in 30 years, the Financial Services industry was included in this discussion and guidelines were established for consumer protection in e-commerce, compensation of damages and further financial issues. The research of FIDES and LIMRA intends to give an overview on the theme together with the Insurance Industry, an initiative by the President of FIDES, Marco Antonio Rossi. The result will be presented at the XXXV Hemispheric Conference.

46


History

BOOK

The book that tells the story of FIDES in detail

T

he production of a book specially intended to tell the history of FIDES over seven decades of operation, highlighting its inuence on the evolution of the insurance industry in Latin America and the Caribbean Region, was approved at the Assembly

held in Guatemala, in 2013. At that time, the name of Roberto Junguito, former president of FASECOLDA, was chosen as the book coordinator and researcher, whose proposal was approved at the General Assembly held in 2012, in Washington, United States. The book, funded by Mapfre Foundation, will be launched in October 27th, during the XXXV Hemispheric Insurance Conference, in Santiago, Chile. Each of the associations of the member countries will receive a copy of the special publication, which will also have a digital version made available on the new website of FIDES, allowing those who wish to print additional copies. Remarkable historical facts in the history of FIDES and some other that preceded its creation will be in the book, such as the important cooperation of Nelson Rockefeller, then coordinator of the Department of North American State, in promoting the I Hemispheric Insurance Conference, in New York, in 1946. Amongst other things, the book narrates the creation, structure and evolution of FIDES and its relationship with the member countries, mentions the Hemispheric Conferences held since 1946, and also includes conclusions, bibliography and statistical annexes of paramount relevance to understand the insurance market development of each member country.


Read the magazine online at CNseg`s website.

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Publication Special issue of CNseg´s Revista de Seguros featuring FIDES

T

he complexity of the themes of interest for Latin America and the Caribbean Region, and the role played by FIDES in the region development were topics of a special edition of

Revista de Seguros, institutional publication of the Brazilian insurance market, published by CNseg in October 2014. The issue was published in Portuguese and Spanish languages. The special edition outlined an economic, political and social overview of each of the 18 countries that compose the group and addressed further topics relevant to the short-term economic outlook and the business opportunities in Latin America, indicating common points of the markets and correlating local economies behavior with the insurance industry performance. With relevant information, interesting facts, expressive figures and innovative concepts, the publication also addressed the problems common to these countries, such as corruption, money laundering and frauds. But, most importantly, it highlighted the relevance of insurance coverages for the socioeconomic development of each of them. In an exclusive interview to the historical issue, the president of FIDES, Marco Antonio Rossi, highlighted the major points of the entity’s agenda for his term, such as the importance of integration among the member countries and the exchange of successful experiences that help to develop the insurance in Latin America, United States and Iberian Peninsula.

49


INSURANCE

Schools Network T

A network to diffuse the insurance education

he initiative to consolidate an Insurance Schools Network was led by CNseg and consisted of mapping and making available on the website of FIDES material containing information on all technical and

high educational institutions in insurance matter in the member countries.

The following member countries were invited: Argentina Escuela de Capacitación Aseguradora www.aacs.org.ar/escuela

Brazil Escola Nacional de Seguros

www.escolanacionaldeseguros.org.br

Chile Escuela de Seguros de Chile www.escueladeseguros.cl/

Colombia Fundación Instituto Nacional de Seguros – INS www.ins.edu.co

El Salvador Escuela de Estudios del Seguro de Centroamérica

www.ases.com.sv/escueladeseguros.html


The first Ibero-American Forum of Education and Training in Insurance will take place in October 26th, 2015, during the XXXV Hemispheric Insurance Conference, in Santiago, Chile, at a meeting coordinated by Escola Nacional de Seguros - FUNENSEG, from Brazil, in partnership with Escuela de Seguros de Chile. This first Forum aims at strengthening the relations among the institutions and creating an environment of discussion on educational issues common to the realities of the member countries of FIDES. The agenda of such Forum includes sharing the good practices and major demands, and signing the protocol on the creation of the Ibero-American Organization for Training in Insurance, FIDES EDUCA.

Ecuador Centro de Formación Aseguradora – FITSE www.educaedu.com/es/institutions/fitse-77786

Spain Fundación Mapfre Estudios www.fundacionmapfre.org

Spain Investigación Cooperativa entre Entidades Aseguradoras y Fondos de Pensiones www.icea.es

Mexico IMESFAC Instituto Mexicano de Seguros y Fianzas A.C. www.imesfac.com.mx

Peru Escuela de Seguros - SEGURTEC www.escueladeseguros.com


FIDES AWARD TO THE HIGHLIGHTED IBERO-AMERICAN INSURER


T

he Presidency Council of FIDES approved the proposal of the President of the Asociación de Aseguradores de Chile A.G., José Manuel Camposano, to give to the

Consejo de Autorregulación de las Compañias de Seguros de Chile, the FIDES Award to the Highlighted Ibero-American Insurer, in 2015. In its more than 10 years of existence, the Consejo de Autorregulación de las Compañias de Seguros de Chile has established itself as a credible, competitive and attentive organization for consumers rights. The Council is an unprecedented example of good practices in the financial system of the country.

HIGHLIGHT The Council encompasses the vast majority of companies operating in the Chilean insurance market.

The Council encompasses the vast majority of companies operating in the Chilean insurance market. The member companies adopt the standards of the Good Practices Compendium drafted by the Council and apply them in their daily interaction with consumers, other companies and internally in their operations. The self-regulation covers various topics that are not addressed by heteronomous regulation and which can be treated by the companies themselves. One of the key contributions of the Council was the creation of the Policyholder Ombudsman, an autonomous entity in relation to the insurance companies, bound to the Council and free of charge for the users. The Ombudsman’s decisions are binding to the companies but not to the policyholders, who may appeal to the Superintendency of Insurance or the Judicial Branch if they prefer.

53


The major contribution of the Council, however, was the introduction of the philosophy and awareness of self-regulation, for an activity of special relevance, such as the insurance activity. The challenges faced by the Council are relative to the consolidation of the advances that have been achieved in terms of insurance consumers protection and adoption of more modern business standards, applied worldwide, anticipating the requirements of an increasingly complex and competitive industry. The current president of the Council is the renowned lawyer and academic Arturo Yrarrázaval, former dean of the Catholic University of Chile; and its current members are the historian, dean of the University Adolfo Ibáñez and director of companies, Lucía Santa Cruz; the jurist expert in insurance, Ricardo Peralta; the former minister of economy and dean of the University Andrés Bello, Jorge Marshall; and the engineer and director of companies, Marcos Büchi. Considering the huge relevance of its duties and goals and because it constitutes an example to be followed in the insurance markets of other member countries of FIDES, for the benefit of the insurance institution, the Board of FIDES grants the FIDES Award of Highlighted Ibero-American Insurer to the Consejo de Autorregulación de las Compañias de Seguros de Chile, represented by its president, Arturo Yrarrázaval.

54


The challenges faced by the Council are relative to the consolidation of the advances that have been achieved in terms of insurance consumers protection and adoption of more modern business standards, applied worldwide, anticipating the requirements of an increasingly complex and competitive industry.


International

partnerships GFIA and UNEP FI are prominent partners

F

IDES is member of GFIA, an entity based in Brussels, Belgium, composed by 31 associations representing 87 % of the insurance premiums global revenue. The Assembly

of FIDES agreed to be a member of such institution, according to a regional view of consensus, with the purpose of promoting regulatory reforms and other changes required by the dynamics of the market. Recaredo Arias, vice president of FIDES and GFIA, discloses the proposals and resolutions issued at these meetings to the members of the entity.

56


At the meeting of the Presidency Council held in May 2015, in Mexico City, the distribution among the members of FIDES of the documents generated in the sessions of GFIA held in Ankara, Turkey, was approved, as well as the Plan of Action issued by the Presidency of the entity.

FIDES keeps partnerships with several international institutions. Among them, the Global Federation of Insurance Associations – GFIA and The United Nations Environment Programme Finance Initiative – UNEP FI.

57


Another important partner is UNEP FI. FIDES is a supporting institution of the Principles for Sustainable Insurance - PSI. Founded in 1992, during the Earth Summit in Rio and based in Geneva, Switzerland, UNEP FI was established as a platform to link the United Nations - UN and the global financial sector.

The work of UNEP FI includes topics such as training and sharing of good practices; research tools; establishment of global standards and principles; involvement of public and private stakeholders; facilitation in the creation of members network, by means of global events and regional activities. CNseg, which is also a supporter institution of the PSI, presented the UN Initiative to the Brazilian market, promoting their launch during the World Conference on Environment, held in Rio de Janeiro in 2012 – the socalled Rio+20. The Principles constitute a framework to the global insurance industry identify the insurance risks and opportunities associated with ESG issues – Environmental, Social and Governance.

I Environmental, whose main concern is climate change

58

II

III

Social, with microinsurance

Corporate governance,

as an example of a

to ensure the strength

support mechanism

of the company


The four Principles are the following:

We will embed in our decisionmaking environmental, social and governance issues relevant to our insurance business.

We will work together with our clients and business partners to raise awareness of environmental, social and governance issues, manage risk and develop solutions.

We will work together with governments, regulators and other

We will demonstrate accountability

key stakeholders to promote

and transparency in regularly

widespread action across society

disclosing publicly our progress

on environmental, social and

in implementing the Principles.

governance issues.

Visit the partners’ websites using the QR Code


International

relations

Initiatives aimed at strengthening relations amongst countries

U

nder a new concept for strengthening international relations, with the active participation in forums and committees, several members of entities associated

with FIDES have cooperated to strengthen the international positioning of the entity.

Presidency Council / Meeting with members of the Asociación de Supervisores de Seguros de América Latina - ASSAL: in 2014, the members of the Presidency Council of FIDES convened once more with members of ASSAL in Asunción, Paraguay, on April 24th. Considering the high level of productivity of this meeting, the members of the Presidency Council of FIDES agreed to hold the annual meeting of the Board on the same date and at the same place of the Annual Seminar of ASSAL, in order to optimize the agenda of executives and take better advantage of both meetings.

60

Convention of Mexican Insurers:

XV Conference on Insurance Regulation

the president Marco Antonio Rossi

and Supervision in Latin America of

attended two panels at the event held by

ASSAL – the president of FIDES, Marco

the Asociación Mexicana de Instituciones

Antonio Rossi, took part in the panel

de Seguros, A.C. - AMIS, held on May 6th

on Fight Against Insurance Fraud,

and 7th, 2015, in Mexico City.

held on April 23rd, 2014.


FIDES vice president Recaredo Arias, and the future president, Pilar González de Frutos, participated, on the 16th of September, 2015, in the panel about Solvency II, in the 4th Meeting of Actuaries at the 7th CONSEGURO - CNseg, in São Paulo, Brazil.

Participation in the Assemblies and in the Annual Conference of the International Association of Insurance Supervisors IAIS: IAIS determined that, from 2015, the “Observers” category would no longer be admitted. Taking into account the importance of the participation of FIDES at the meetings of IAIS, it was decided that GFIA would be your point of contact and main representative body.

Week of Insurance in Madrid, Spain - INESE: Representatives of FIDES, Recaredo Arias and Raúl De Andrea attended the event, organized by INESE, in Madrid, in February 2014 and 2015.

The President of FIDES, Marco Antonio Rossi, attended the inauguration ceremony of Armando Virgil as president of the Confederacción Panamericana de Productores de Seguros (COPAPROSE), on April 25th, 2014, in Lima, Peru.

The Secretary General and the vice president of FIDES, Raúl De Andrea and Recaredo Arias, respectively, the latter also acting as vice president of GFIA, participated in the meetings of GFIA, held in Australia ( 2014 ) and Turkey ( 2015 ) with regulators, supervisors and executives of the insurance industry to deal with issues of financial inclusion, catastrophic risks, standards and investments.

10th International Conference on Microinsurance, Munich Re Foundation: the president of FIDES, Marco Antonio Rossi, gave the opening lecture, in November 11th, 2014, in Mexico City. The vice president and the secretary general of FIDES, respectively, Recaredo Arias and Raúl De Andrea attended the Conference panels.

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List of

Active and Adherent Argentina

Bolívia

Brasil

Chile

Asociación Argentina de Cias. de Seguros

Asociación Boliviana de Aseguradores

AACS

ABA

Asociación de Aseguradores de Chile

President Francisco Astelarra

General Manager José Luis Camacho Miserendino

Confederação Nacional das Empresas de Seguros Gerais, Previdência Privada e Vida, Saúde Suplementar e Capitalização

ACTIVE MEMBERS

CNseg

AACH President José Manuel Camposano Larraechea

President Marco Antonio Rossi

United States

Guatemala

Honduras

Mexico

American Council of Life Insurers

Asociación Guatemalteca de Instituciones de Seguros

Cámara Hondureña de Aseguradores

Asociación Mexicana de Instituciones de Seguros

ACLI President and CEO Governador Dirk Kempthorne

AGIS

CAHDA President Luis Atala Faraj

President Nolasco Sicilia Valls

AMIS President Mario Vela Berrondo

American Insurers Association

AIA

ADHERENTS MEMBERS

President Leigh Ann Pusey

President Peter F. Hugger

President José Carlos Cardoso

President

President

Carlos Caputo

Munich RE Brazil Rodrigo Belloube


Members | 2015 Colombia

Costa Rica

Ecuador

El Salvador

Spain

Federación de Aseguradores Colombianos

Asociación de Aseguradoras Privadas de Costa Rica

Federación Ecuatoriana de Empresas de Seguros

Asociación Salvadoreña de Empresas de Seguros

Fasecolda

AAP

Fedeseg

ASES

Unión Española de Entidades Aseguradoras y Reaseguradoras

President Jorge Humberto Botero Angulo

President Kevin Lucas Holcombe

President Antonio Arosemena Merino

President Eduardo Montenegro Palomo

Nicaragua

Panama

Paraguay

Peru

Venezuela

Asociación Nicaragüense de Aseguradoras Privadas

Asociación Panameña de Aseguradores

Asociación Paraguaya de Compañías de Seguros

Asociación Peruana de Empresas de Seguros

Cámara de Aseguradores de Venezuela

Apeseg

Camaraseg

President Eduardo Morón

President de Junta Diretora José Omar Guevara

Anapri President Sergio Ulvert

Apadea President José Antonio Eleta

General Director

Executive President

L. A. Ingrid Carlou

Michel M. Liès

APCS President Antonio Vaccaro Pavia

Director President Paulo Eduardo de Freitas Botti

Unespa President Pilar González de Frutos

President

President

Javier Edmundo Vijil

Robert Bittar





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