CHILE Law and Practice Contributed by: Ricardo Rozas, Max Morgan and Stefano Perretta, JJR Abogados
automatically subrogates all the insured’s rights and actions against third parties responsible for the loss. Strictly speaking, no assignment of rights is required, provided evidence of the payment is submitted.
of sustainability and corporate governance aspects (ESG) for issuers of publicly offered securities and other audited companies – ie, banks, insurance com- panies, AGFs and stock exchanges, among others. 11.2 New Products or Alternative Solutions See 11.1 Emerging Risks Affecting the Insurance Market . 12. Developments in Insurance Law 12.1 Significant Legislative or Regulatory Developments Developments Impacting on Insurers or Insurance Products In September 2024, the CMF opened a public consul- tation process (the “Regulatory Proposal”), in order to establish the criteria for parametric insurance, includ- ing the variables that may be considered as indices, insurable risks and requirements that must be met by the policies deposited with the CMF. In this respect, the main features of the Regulatory Proposal are as follows. • Risks that may be commercialised as parametric: (a) earthquake; (b) fire; and (c) other natural risks. • Requirements of the policies deposited with the CMF: (a) product structuring – parametric insurance must include a single cover, and payment of compensation will proceed when the risk or harmful event reaches the agreed value for the index or parameter agreed in the policy (para- metric policies cannot be commercialised in conjunction with additional clauses); (b) identification as parametric insurance in the general conditions of the policy (eg, earthquake or drought parametric insurance); and (c) minimum content of the general conditions (including parametric insurance statement, coverage, parameters or indices used for the risk assessment, risk location, payment of indemnity, and insurable interest). • Registration with the CMF.
10. Insurtech 10.1 Insurtech Developments
Chile recently enacted a law providing the first regu- latory framework for fintechs. Among others, the so- called Fintech Law modified the Chilean Insurance Act (DFL 251) to expressly allow parametric insur- ance, which implies that, on the occurrence of a risk or adverse event stipulated in the insurance contract, indemnity can be paid without the insured having to justify the existence or amount of the damages, even if they are not finally materialised. Under this modal- ity, the factors and risks must be demonstrable and clearly measurable through objective procedures, and the risk must be insured according to the general insurance rules. 10.2 Regulatory Response The CMF has yet to issue further guidelines on para- metric insurance (see 12.1 Significant Legislative or Regulatory Developments ). 11. Emerging Risks and New Products 11.1 Emerging Risks Affecting the Insurance Market Supreme Decree 1055-2013 includes two provisions specifically aimed at catastrophe losses, as follows: • the CMF can extend the adjustment period up to 180 days; and • where there is more than one loss notified at a condominium, each insurer shall appoint only one adjuster. In addition, the CMF has adopted a strategy to address climate change in financial markets, advanced to the global forefront of disclosure, and is working to devel- op comprehensive supervision of issuers, with a view towards financial materiality. In this respect, the CMF issued NCG No 461-2021, which implies disclosure
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