Lloyd’s approved for direct MAT in Chile

by Gill Montia

Story link: Lloyd’s approved for direct MAT in Chile

Lloyd’s has been approved to transact direct MAT (marine, aviation and transit) business in Chile.

Late last year, the Government of Chile approved certain changes in the laws governing the country’s insurance industry.

The move followed the signing of the Free Trade Agreement between Chile and the European Union, and Lloyd’s has now been approved under Regulation No 197, to transact direct MAT business in the country.

Previously, any Chilean citizen or company could buy insurance from a foreign insurer.

However, foreign insurers and intermediaries could not solicit or broke for direct business within the country.

The new regulations enable foreign insurers to write insurance connected directly with international marine transport, international commercial aviation and goods in international transit, on a direct basis.

Civil liability, vessel and aircraft hull insurance, and cargo insurance are also included but loan insurances and civil liability for the transportation of passengers are excluded.

In a statement accompanying the announcement of its acceptance, Lloyd’s described Chile’s economy as “deregulated and stable,” as well as welcoming to foreign investment.

Lloyd’s has also stated that “its brokers and syndicates are well-positioned to take advantage of the opportunities presented in the Chile insurance market, which has been the second most dynamic market for Lloyd’s in Latin America, producing an annual average premium growth of 8.8%”.