Beruflich Dokumente
Kultur Dokumente
26 April 2012 Sedgwick, Detert, Moran & Arnold LLP Mark Kendall
Partner, Insurance Division Specialises in Property & Casualty Reinsurance mark.kendall@sedgwicklaw.com +44.20.7398.8929
Duncan Strachan
Special Counsel, Insurance Division Specialises in Latin America duncan.strachan@sedgwicklaw.com +44.20.7398.8931
Presenters
Mark Kendall Partner, Insurance Division Specialises in Property & Casualty Reinsurance
& casualty losses in the energy, utilities, transport and construction sectors
Broad experience of representing reinsurers in Latin
Breach of claims cooperation in respect of numerous claims against a Brazilian road operator Coverage advice to reinsurers on Argentine courts decision to ignore policy deductible and limits Defence to Colombian class actions following terrorist attack on oil pipeline
Defining trends
continued investment
2. Political stability is the foundation for continued
on the rise
4. Transferring risk increasing need and demand
BRAZIL
Brazil in context
Latin Americas giant demand for insurance Opening up of the reinsurance market in April 2008
is a concern
untested
Procedural obstacles and dangers Lengthy court proceedings involving (re)insurers High interest rate (9%)
limitation)
INSS recoveries also on the rise
of Reinsurance (IRB)
Protectionist measures (resolutions 225 and 232)
relaxed
Tension remains between interests of IRB and
foreign reinsurers
Local - head office in Brazil Admitted (e.g. Lloyds) - representative office, accounting and reporting obligations Eventual - registered with Susep, limited to 10% share of risks
Six local reinsurers in Brazil by the start of 2011
jurisdiction
Consider using international arbitration
Uncertainty about the rules applicable to
reinsurance
Expressly set out the effect and consequences of each term
Check the terms of the original policy and solvency of the local insurer
IRB competition
Concurrent text in Portuguese (with English version to prevail) Encourage interaction and agreement with the local insurer
MEXICO
Mexico in context
Lloyds desk in London catastrophe risks Stable economic growth, slowed by world crisis Recognition of need for investment - infrastructure
claims
Rare for employers to face claims for compensation State compensation is capped
Strict rules on writing business in Mexico Limited business reaches foreign reinsurers Insured-friendly interpretation of (re)insurance
contracts
Arbitration is a good compromise
Use claims cooperation where possible Be sure to act upon rights immediately
Insured-friendly interpretation
COLOMBIA
Colombia in context
1989
Investment Grade rated - increased opportunities
to reinsurers
Terrorism
Increase in collective and constitutional actions Rise in dispute resolution to avoid lengthy
proceedings
Impact of interest can be significant at 24% per year Costs at 15 20% of award
Include provision for international arbitration Or use Colombian arbitration for speedier, more sophisticated resolution
Local insurer will often be joined to proceedings Reinsurance is recognised as separate Draft important provisions as warranties Take care in discussion with cedant / adjusters
ARGENTINA
Argentina in context
Energy crunch, despite abundant natural resources
for reinsurers
system
Conciliation process compulsory in Buenos Aires Unpredictable judgments (Ortega; Goyeneche)
Reinsurer
Will the SSN grant a waiver in some cases for
Potential for growth but uncertainty rules Prospects for foreign reinsurers may improve in the
long term
High risk associated with new business and claims
CHILE
Chile in context
Leading economy developed legal system Growing industries, major exports in copper, iron
ore, gold
Impact of 2010 earthquake Few restrictions on foreign investors in Chile
compensation:
Moral damages Loss of earnings
friendly
Importance of the adjuster Chilean law and jurisdiction - arbitration for large
disputes
Good practice to have proper Spanish translation
Draft reinsurance contracts carefully Dialogue with (re)insured is crucial Claims cooperation / control
Court procedure remains cumbersome
A bright future?
Lloyds
Unpredictable application / interpretation of
insurance rules
Important not to generalise