UNDP Promotes Regional Strengthening in Insurance Supervision with Support from Mexico’s CNSF

As part of the Insurance and Risk Financing Initiative (IRFF), the UNDP and the CNSF led a workshop in Argentina to train insurance authorities from five countries on the Solvency II regime and risk-based supervision.

Buenos Aires, Argentina – As part of the United Nations Development Programme (UNDP) Insurance and Risk Financing Initiative (IRFF) in Mexico, a three-day workshop was held in Buenos Aires, Argentina. The workshop, led by the National Insurance and Bonding Commission (CNSF), explained to insurance authorities from five countries in the region the key elements of the Solvency II regime and risk-based supervision.

Specifically, the CNSF shared its experience in implementing the regime, technical processes, and lessons learned. Additionally, Colombia’s Financial Regulation Unit and the Financial Superintendence contributed their experiences with the regime’s implementation, fostering an enriching exchange of ideas among the participating countries.

The Solvency II regime is a regulatory framework that sets standards for insurance companies to ensure they have the necessary financial resources to meet their obligations. It also establishes governance, risk management, transparency, and supervision requirements within companies, helping to improve the measurement and control of risks faced by insurers and reinsurers. Since transitioning to this regime requires several reforms to national regulations and the establishment of supervisory capacities within authorities, it is particularly valuable to benefit from the guidance of a country with a similar context that has already undergone this implementation process.

The workshop saw the participation of 20 officials from Argentina’s National Insurance Superintendence; Colombia’s Financial Regulation Unit and Financial Superintendence; Ecuador’s Financial Policy and Regulation Board and Superintendence of Companies, Securities, and Insurance; the Dominican Republic’s Insurance Superintendence; and Uruguay’s Financial Services Superintendence.

The aim of this workshop was to strengthen the capabilities of insurance regulatory and supervisory authorities, contributing to the solidity of the insurance sector and ensuring greater protection for the population. In this context, Mexico’s experience with the implementation of Solvency II is particularly relevant, as this regime establishes a regulatory framework designed to ensure insurers' solvency, protect policyholders, and promote financial stability.

Participants valued the opportunity provided by UNDP to share knowledge about best practices in the insurance sector at the regional level. They particularly highlighted the opportunity to translate concepts into practical experiences shared by two countries in the region during the implementation of this regime.

Through the IRFF, the UNDP will continue to foster bilateral cooperation between these countries, strengthening the capacities of the authorities and increasing protection for the entire population.