CHILE Trends and Developments Contributed by: Daniel Silva and Pía Parmar, Silva & Parmar Abogados
regulatory amendments of relevance to insurers and reinsurers. Among the most notable aspects are: • a new employer contribution of 7%, which is added to the 1.5% allocated to the Disability and Survivorship Insurance, reaching a total contribu- tion of 8.5% on the pensionable remuneration; • establishment of social pension insurance, admin- istered by the Social Security Institute; • new bidding and competition mechanisms in the pension industry; and • strengthening of the role of the Financial Market Commission (CMF) as the regulatory and super- visory authority of the financial and insurance market. These changes have a direct impact on the life insur- ance market – particularly on annuity products and pension-related insurance – encouraging contract- ing and modifying the bidding bases as well as the requirements for information and governance. The Personal Data Protection Act (Act No 21,719) Enacted on 12 December 2024, Act No 21,719 updates the regulation on the protection and processing of personal data in Chile, aligning it with international standards such as the European Union’s General Data Protection Regulation (GDPR). This legislation has a significant impact on the insurance sector, which manages large volumes of sensitive client data. The main aspects include: • granting rights to data subjects (access, rectifica- tion, erasure, objection, portability, blocking); • establishing the Personal Data Protection Agency (APDP), responsible for supervision and for sanc- tioning infringements; • requiring insurers and brokers to implement robust security systems, updated privacy policies and incident management protocols; and • reinforcing transparency and explicit consent in the use of data, particularly in client segmentation and premium determination. Act No 21,719 will enter into force in December 2026, and will represent a paradigm shift in the management of personal data within the Chilean insurance sector. Insurers and brokers must adapt their processes to
ensure compliance with the new standards of protec- tion, transparency and explicit consent, particularly in client segmentation and premium determination. Under Articles 12 and 13, the Act requires any party processing personal data to rely on a lawful basis, which obliges controllers to manage the obtaining of consent, to duly justify legitimate interest, or to rely on one of the other bases provided for in the regulation, prior to any processing. Likewise, special require- ments must be considered when dealing with sensi- tive data or with children and adolescents, in accord- ance with Article 16. Additionally, Articles 27 and 28 regulate the interna- tional transfer of personal data, establishing that such transfers shall be lawful when one of the grounds set out therein is met. In this respect, the determination of the APDP regarding countries deemed to have ade- quate levels of data protection will be of particular relevance. Title VII of the Act sets out the general liability regime, with infringements classified according to their seri- ousness (minor, serious and very serious), and sanc- tions depending on the gravity of the infringement as well as on recurrence, mitigating and aggravating circumstances, and even the size of the company. The amounts to which insurers and brokers may be exposed could reach approximately USD4.6 million or 4% of annual revenues from sales and services. An important challenge for insurance companies in 2026 will be the reviewing and amendment of con- tracts entered into with the various service provid- ers with whom they share data and for which they remain responsible. This will undoubtedly include claims adjusters, brokers and reinsurers, who will be required to determine in what capacity they process personal data, to incorporate the corresponding data processing clauses. Regulation of parametric insurance In August 2025, the CMF issued General Rule No 546 regulating parametric insurance, enabling insurance companies to market this type of product in accord- ance with the Fintech Law of 2023. Parametric insur- ance is characterised by the payment of the agreed
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