COLOMBIA Trends and Developments Contributed by: Rebeca Herrera, Rebeca Herrera Abogados
Additionally, it is reiterated that bidding processes for insurance related to mortgage loans or leases must encourage the participation of at least two insurance companies. If unsuccessful, the process should be adjusted and reissued, allowing for a second call for bids, even with a single bidder, under certain condi- tions. These rules aim to balance protecting the debtor (regarding continuity and fair insurance conditions) with competition among insurers for these high-vol- ume accounts. Outlook: from regulatory refinement to risk-based supervision From the perspective of the insurance market, the new CBJ does not represent a fundamental revolution in the legal framework, but rather a profound moderni- sation that: • streamlines and reorganises regulation, making the architecture of obligations for insurers, reinsurers, and intermediaries more readable; • strengthens the components of corporate govern- ance, internal control, cybersecurity, and risk man- agement, in line with international standards; • introduces specific adjustments with a high practi- cal impact on the authorisation of lines of business, premium financing, the timing of claims, technical reserves, and portfolio transfers; and • clarifies the regime for cross-border provision and the participation of foreign insurers and brokers.
In the coming years, the SFC is expected to use this new CBJ as a platform for increasingly risk-based supervision, supported by data analysis capabili- ties, consolidated supervision of conglomerates, and co-ordination with other national and international authorities. For market participants – insurers, rein- surers, intermediaries, large policyholders, and advis- ers – the challenge will not only be to comply with the new instructions formally but also to leverage the opportunities created by regulatory optimisation to innovate in products, channels, and risk structures, while maintaining consumer confidence and the resil- ience of the system.
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