New Legal Framework for the Authorization of Payment of Reinsurance and Retrocession Premiums

According to regulations enacted by the Central Bank of Argentina, in order to pay reinsurance and retrocession premiums abroad, it is necessary to obtain prior certification from the SSN. Until now, applications to obtain such certifications were governed by Resolutions SSN No 35,481/2010 and 35,726/2011 and Communications SSN 3125 y3943.
On September 12, 2014, the SSN enacted Resolution No 38,595/2014 (the “Resolution”), which generally concentrated into one single agency the requirements that had been set forth in the resolutions and communications referred to in the paragraph above, and also introduced some new requirements.
The Resolution now establishes two different mechanisms to apply for the SSN certification: one for local reinsurances companies to pay retrocession premiums abroad, and the other for local insurance companies to pay reinsurance premiums abroad.
Local reinsurance companies must first fill in an on-line payment order on the SSN systems (“SINENSUP”), and must then submit the payment order to the SSN as an affidavit. Local insurance companies must submit an affidavit with the SSN.
The Resolution maintained the requirement that affidavits must be filed along with an outside auditor’s report. New requirements were introduced for such reports.
The Resolution also established that beneficiaries of reinsurance payments may appoint agents to collect reinsurance or retrocession premiums, only with respect to reinsurance or retrocession contracts where a reinsurance broker -duly registered with the SSN- has intermediated.
The Resolution will come into force on October 1, 2014.