Insurance Superintendence Regulates Parametric Insurance

The Argentine Insurance Superintendence (SSN) issued Resolution 315/2026, published in the Official Gazette on July 23, 2026, which added article 23.8 and its corresponding annex to the General Regulations of Insurance Activity (RGAA). The Resolution became effective on the same day.

Until now, Argentina had no general definition or framework for parametric insurance. Specific regulations were largely limited to certain index-based agricultural insurance products. Outside that area, such products were not prohibited, but they had to be submitted under the general specific approval procedure, without particular rules on index design, data sources, basis risk, or payment of benefits.

 

Definition and scope

The Resolution defines parametric insurance as “insurance under which, upon the occurrence of the covered risk or loss event, the indemnity is triggered and paid when a predetermined index reaches the value established in the contract”. The insured is not required to prove the existence or amount of the loss and may receive the benefit even if no loss has actually occurred.

The Resolution expressly prohibits using parametric insurance for life insurance. Parametric coverage must also be marketed as a standalone product and may not be incorporated into other policies as additional coverage.

 

Insurance plans approval

As a general rule, parametric insurance plans must be submitted to the SSN for specific approval. In addition to the documents required for specific approvals, insurers must submit a technical feasibility study supporting the relationship between the selected index and the risk to be covered. Both the study and the index must be validated by an independent actuary registered in the SSN’s Registry of Actuaries.

The Resolution also allows an insurer to authorize other entities to use one of its parametric insurance plans. In that case, the adopting entity must use the product in its entirety and may not make changes to it.

If, due to the nature of the risk or the product’s technical complexity, the SSN considers involving the Secretariat of Agriculture, Livestock, and Fisheries necessary, the procedure established by Joint Resolutions 157/2015 and 39149/2015 will apply, i.e., the rules that already existed and that were limited to agricultural risks.

 

Special regime for the public sector and large policyholders

The Resolution establishes a more flexible procedure when the policyholder is the federal government or a provincial or a municipal government, or when the sum insured exceeds one million Purchasing Value Units (UVA) (approximately USD 1.35 million, at the date of this article). In such cases, the policy may be issued without the SSN’s prior approval.

The insurer must report to the SSN the issuance within 30 calendar days and submit, among other documents, the general and particular policy conditions, a description of the index, the technical feasibility study, legal and actuarial certifications, and validation by an independent actuary.

The policyholder must also submit an affidavit stating that it received advice on how the product operates, the index used, basis risk, and the historical frequency with which the agreed parameters reached the trigger threshold.

This regime constitutes a special category separate from the general Large Risks regime under article 23.5 of the RGAA. For parametric insurance, the threshold is one million UVA, whereas the general regime classifies risks exceeding 3,500,000 UVA as Large Risks (equivalent to approximately USD 4.7 million).

 

Index and policy requirements

The policy must expressly identify the index or combination of indices that will determine whether a covered event has occurred, as well as the domestic or foreign provider from which the relevant information will be obtained. It must also designate an alternative provider or establish the procedure to be followed if the primary source is unavailable.

The contractual documentation must clearly explain the existence of basis risk. It must also disclose the historical frequency with which the parameter reached the trigger level, based on a statistically representative period.

The insurer will be responsible for ensuring that the information used and the result of the calculation are available to the insured. The feasibility study must demonstrate the correlation between the index and the risk of loss, taking into account, as applicable, the relevant geographic area, the type of production and critical periods.

The indemnity must consist of one or more predetermined fixed amounts. The policy may establish a single amount or different tiers depending on the intensity level the index reaches. In the latter case, the specific policy terms must state the amount or percentage corresponding to each threshold.

Payment must be made within a maximum of 15 calendar days after the event that causes the index to reach the value specified in the contract occurred.

 

Changes from the previous regime

The key development is not that parametric insurance has moved from being prohibited to being permitted, but rather that the Resolution introduces a general regulatory framework applicable across all types of risks. The new framework expressly recognizes parametric insurance, defines how it operates, and establishes minimum requirements for product design and structuring.

The previous regulation provided a relatively developed framework for index-based insurance. However, it was limited to agricultural risks. Although it was possible to seek approval for non-agricultural parametric products under the general case-by-case approval regime, there was no dedicated regulatory framework for other sectors, which resulted in a less predictable operating environment from a regulatory perspective.

As a result, the Resolution opens the door to the development of parametric products covering climate-related risks, natural catastrophes, energy, infrastructure, and other activities, without the need to apply by analogy rules originally designed for the agricultural sector.

 

Conclusion

The Resolution represents a significant step forward for the development of parametric insurance in Argentina. By establishing a definition and general requirements, it provides greater predictability and facilitates the development of products for sectors beyond agriculture.