The regulator has introduced a series of reforms aimed at modernising the regulatory environment, but solvency requirements have also become stricter.
Since the election of President Javier Milei in late 2023, Argentina has undergone a dramatic shift in its economic and regulatory philosophy. The new administration has prioritised liberalisation, market openness, and the reduction of state intervention across multiple sectors.
The insurance industry, long governed by a complex and often rigid regulatory framework, has not been exempt from this wave of reform.
In early 2024, Guillermo Plate was appointed as Superintendent of Insurance, marking a turning point for the regulatory agency, the Superintendencia de Seguros de la Nación (SSN).
Under his leadership, the SSN has introduced a series of reforms aimed at modernising the regulatory environment, reducing bureaucratic burdens, and enhancing transparency. On the other hand, solvency requirements have also become stricter.
Although some of the new rules focus on the simplification of certain formal requirements, others have set out to bring supervision on key aspects of insurance activity in line with international best practices.
Transparent process
Under the previous regime, applications for new insurance licenses were subject to a “convenience” decision. The SSN could decide not to grant new licences on a subjective basis, even when applicants met all regulatory requirements. This “convenience” evaluation has now been revoked, leaving a clear set of rules for a transparent application process.
Before, there was a correlation between the type of insurance lines each company operated with andthe respective capital requirements. This has since been streamlined, leaving a single capital requirement for all new direct insurers, regardless of the amount or type of lines of business they will be writing.
Minimum capitals are established in “units of acquisition value” (UVA, in its Spanish acronym): 750,000 UVAs for direct insurers and 3,750,000 for local reinsurers (approximately $905,000 and $4,530,000 for insurers and reinsurers, respectively, at current values).
Another change to the same rule has eliminated the former prohibition for companies to simultaneously operate life and property lines, with a single company now permitted to operate both lines of business.
However, for the actual operation of both lines, the insurer requires a formal authorisation from SSN.
Reducing bureaucracy
Under the previous system, all transfer of shares transactions was subject to prior approval by the SSN to become effective.
This was amended and now share transfer transactions can be completed with no prior authorisation. The companies are now simply required to inform SSN about such a change within 48 hours of it becoming effective, to ensure new shareholders comply with regulatory requirements. The same applies in case of capital contributions.
In addition, individual shareholders of insurance companies are no longer required to disclose their personal tax filings and their other compliance obligations have been simplified and replaced with a sworn declaration.
According to the new rules, insurance companies can now present new wordings following certain minimum guidelines set forth by SSN, along with a legal opinion issued by an independent lawyer stating that it complies with the current regulations and an opinion issued by an actuary registered at SSN supporting the technical sufficiency of the premiums, among other requirements.
The insurer will automatically be able to use the new wording, although it may receive observations from the regulator for adjustments.
For “high risks” contracts, of non-life business whose insured amounts exceed the amount of 3,500,000 UVAs (currently equivalent to around $4.2m) the insurer may agree more freely on the contractual conditions with the insured but it must report it to the SSN within 15 days following its issuance, including an independent lawyer’s opinion certifying the regulatory compliance of the text and a registered actuary’s opinion certifying the corresponding reinsurance and retention conditions.
Foreign currency contracts
Following amendments introduced to the Argentine Civil and Commercial Code, the SSN revoked the requirement to include mandatory clauses providing the conversion
into local currency of payment obligations denominated in foreign currency. Now, the parties may freely agree contracts with obligations denominated in a foreign currency and payable exclusively in such foreign currency.
Nevertheless, the insurers are required to have a clause approved by SSN (pursuant to the minimum guidelines regime) for the currency conversion when the parties have agreed the alternative to pay in local currency (pesos) for such foreign currency contracts.
As there are still certain temporary restrictions for access to foreign currency at the official exchange regulated by the Argentine Central Bank (restrictions that are expected to be lifted by the end of 2025), many contracts still include the payment in the local currency alternative.
The maximum retention levels insurers have to observe were simplified to a single parameter with the purpose of keeping an adequate relation between risks retained and the insurer’s solvency. The new maximum retention level allowed per risk and/or event is 10% of the company’s net worth.
Reporting requirements
Reporting deadlines have been reduced in the last year, with insurers now required to file their reports within 45 days of the end of each quarter, while reinsurers have a 60-day window.
In addition, financial statements are now required to be published in the respective company’s and SSN’s websites and must remain available for at least five years.
The methodology for calculation of liabilities for incurred but not reported (IBNR) claims was reformed to be applied on a general basis to liabilities of all casualty lines.
Likewise, the calculation of minimum reserves was redefined and the accounting rules for determination of computable capital was brought in line with stricter solvency requirements.
In a recent resolution, the SSN has established a new electronic reporting system for insurers to report, on a quarterly basis, about the status of claims under mediations or judicial proceedings. This system enables an improved access to data informed with more details required for each reported matter.
In summary, the reforms introduced by the SSN under Guillermo Plate mark a significant departure from the agency’s former approach. By reducing red tape, the SSN seeks to lower operational costs for insurers and to encourage greater participation in the market. Likewise, by prioritising transparency, efficiency, and market access the
new administration has positioned Argentina’s insurance sector for a more competitive and productive future.
This article was first published in Insurance Day on 5 August 2025.