Legislation regarding Insurances

The creation of Law 1883 on June 1998 reinforces and controls the Insurance Market in Bolivia, establishing the principles of fairness and legal security.

A minimum capital of operation to the Insurance Companies, Insurance Brokers, Reinsurance Brokers and Intermediaries is introduced.

It was established that Insurance Companies must present on a monthly basis their margins of solvency and investments to the Superintendencia de Pensiones, Valores y Seguros to obtain the control of profitability that each one has of the Insurance Companies. Later was also introduced the “Seguro Obligatorio contra Accidentes de Tránsito” (S.O.A.T.)

In 2009, the Superintendencia de Pensiones, Valores y Seguros (SPVS) is replaced by the Autoridad de Supervisión del Sistema Financiero de Bolivia (ASFI), an institution that arises from the mandate of the New Political Constitution of the State, by means of the article 137º of the Supreme Decree Nº 29894 dated 7 February 2009, it defines that the Superintendencia de Pensiones, Valores y Seguros (SPVS) will be named Autoridad de Supervisión del Sistema Financiero de Bolivia (ASFI) and will assume, in addition, the functions and attributions of control and supervision of the economic activities of values and insurances.

In that framework, the Autoridad de Supervisión del Sistema Financiero de Bolivia (ASFI) is a technical institution, of public right and with jurisdiction in all the national territory, responsible for regulating and supervising all the entities that carry out activities of financial intermediation, values and insurances.

According to Law 065 article 167 of the Pension Law dated December 10th, 2010, by means of Administrative Resolution ASFI/033/2011 an inspection organism named Autoridad de Fiscalización y Control de Pensiones y Seguros “APS” was established that will be in charge of the attributions, powers, rights and duties regarding the Insurance field from the Autoridad de Supervisión del Sistema Financiero de Bolivia (ASFI).