The Experience of ASSAL with Insurance Statistics Based on Survey about Sources of Insurance Statistical Information Montevideo- September 2013

1.Context. 2.Statistics Insurance ASSAL Member Countries (OECD survey application) and results. 3.Preliminary conclusions. Agenda

Context Availability of technical and financial statistics about insurance is a key element for: – The effective supervision of insurance activity in each country. – Transparency of the insurance market and the supervisory process. – Development of public policies for the insurance sector (regulation, supervision and encourage policy. – Appropriate monitoring of the insurance sector by private entities like credit rating agencies, external auditors and research institutions. – Encourage scientific research about insurance market. – To build a benchmark about insurance companies performance and his risk profile.

Insurance Statistic at ASSAL Members In order to check the availability of statistical information on insurance ASSAL member countries, adapted a survey developed by the OECD for the same purpose in Asia. The questionnaire has 17 questions and it was send to 21 jurisdictions. The results of the survey were pretty good in terms of coverage. It was answered by 19 members of the 21 ASSAL members.

Supervisory Authorities Supervisory Authorities and Regulation of the insurance sector are diverse among Assal members countries. At several jurisdictions the insurance supervisors are in charge of the control of banks, pension funds administrators in addition to insurance companies. Just a few members countries of ASSAL (5) have a institution devoted to insurances regulation and supervision as an exclusive activity. (Argentina, Costa Rica, México, Puerto Rico y Portugal).

Statistical Collection on Insurance In general terms, the insurance statistics are defined, collected and published by the insurance supervisor authorities. That is the case of 16 of 19 participants countries at the survey. Just in case of Brazil, Panama y Peru there are another public entities taking part of the process. Those institutions are: – ANS – AGÊNCIA NACIONAL DE SEGUROS – APADEA (Asociación Panameña de Aseguradoras) – Asociación Peruana de Empresas de Seguros (APESEG) - Superintendencia de Mercado de Valores (SMV) - Ministerio de Transportes y Comunicaciones - Fondo de Compensación del Seguro Obligatorio de Accidentes de Tránsito y del Certificado Contra Accidentes de Tránsito. - Apoyo & Asociados Internacionales - Class & Asociados S.A. - PCR (Pacific Credit Rating) - Equilibrium

Means for Collection of Information In general terms, insurance statistics are received in electronic or digital format. – In 15 countries will receive the information in electronic format (specialized software). – In 3 countries the information is received in digital document (eg Excel spreadsheet). – Four countries also receive information in the form of physical documents.

How often the information is collected? Full financial statements: – Shortest frequency: Monthly 7 countries Quarterly4 countries Semi annual1 country Annual 4 countries NA 3 countries Partial Information : – Shortest frequency: Monthly 4 countries Quarterly:2 countries Date Complete Audited Financial Statements: – December 31: 14 countries June 30 2 countries NA: 3 countries

Assessing and Validating Information It is a rule that the institution in charge of collect the information made a the assessment and the validation of the information. – 17 / 19 countries do some kind of validation process. 13 have logic validation 2 have just basic validation 2 have another validation system – 2 countries have no validation.

How much time take the publishing of the most part of the information? 17/19 jurisdictions answered that question of the survey. The average time to do the publishing was 49,9 days. 50% of the entities publish the information 30 or less day after the date when they have the information. The minimum publishing time was 15 days. The maximum publishing time was 180 days.

Improvement plans for insurance statistics collection Eight of reporting institutions plans to improve information. – Five institutions plan to improve data collection system by introducing electronic devices for receiving it. – Three entities are planning to modify its information system to adapt to changes in its monitoring system (SBR or S II)

Using the Web as a way of publishing About insurance statistics publishing: 17 countries publish their statistical information on the institutional website, including financial statements. 8 countries publish, in addition, all their information at company level: Bolivia, Chile, Colombia, Guatemala, Mexico, Nicaragua, Panama and Paraguay.

How long are the statistics? The question was answered by 17/19 supervisory entities. The average extension of the statistical information was 20 years. The shortest statistical series are Costa Rica´s. There, the insurance market was deregulated recently. The longest statistical series are Peruvian’s: 85 years with information about insurance market..

Cost of the Information 14 of the 19 countries that responded to the survey, said making available all or part of statistical information and analysis related to the insurance business for free on the Internet.

Availability of data for new business and maintenance Four countries have this openness of information: – Spain – Chile – El Salvador – Paraguay

Using statistics from other international data sources Four countries use international sources, including mention: – ASSAL – OECD – IASB Its use is to develop specific reports and comparative insurance sector.

Accounting practices used to Financial Statements 11/19 countries answer the question. – 7 countries indicate that use local GAAP (Generally Accepted Accounting Principles) – 4 indicate that use IFRS or IAS. Three of these countries (Mexico, Costa Rica and Chile combined international accounting standard ad hoc provisions for some business areas.

Difficulties Implementing accounting principles 15 countries answered this question. – 5 of them reported having no difficulties. – Three countries are in the process of updating or revising its regulations. – Of the 7 countries that reported difficulties, describe what follows: Regulatory difficulties, which results in: Need to train staff Need to implement new computer systems

Concluding Of the 19 responses to the OECD survey applied to Latin American countries ASSAL members, we found that: Most countries designs, collects and publishes statistical information insurance through a single entity in charge. The information is mainly received electronically, 37% on a monthly, 21% quarterly, 5% and 21% semi-annually. The audited financial statements are in most countries in December of each year. Most countries validates the information received and the site publishes, within 50 days average. 14 countries published for free on the Internet. The countries have an average of 20 years of statistical information.

Concluding 8 countries have plans to improve its data collection methods. Some countries are already using international standards own legal rules, others point to be in the process of adopting. The main difficulties encountered in the process relate to the difficulty of regulation, which involves: – Need to train staff – Need to implement new computer systems