In a more moderate speech than usual, the Insurance Superintendent stated that the regulator is betting on deregulation of the sector with a focus on joint work and he focused on the need to lower inflation and expand the market.
The insurance superintendent spoke at the AVIRA seminar.
He Superintendent of National Insurance, Guillermo Platesaid that it is necessary to review the regulation of the insurance sector and control inflation to unlock growth. “We have to eliminate obsolete regulations that hinder market action,” he said within the framework of the 17th International Seminar on Life and Retirement Insuranceheld by AVIRA, the entity that brings together insurance companies in the sector, at the NH Hotel in the City of Buenos Aires this Wednesday.
While acknowledging that “Insurance compromises public savings and, therefore, it is necessary to regulate it“He said that the industry is “covered in regulations” and that many temporary measures must be analyzed to see how they are administered and what purpose they are given. “We do not have to deregulate, but yes, eliminate obsolete regulations“, he emphasized.
“What we want is that the State sets the playing field for the economy in general“, he noted. In this way, Plate slightly softened the deregulatory discourse that he had maintained since taking office in December of last year. In some sectors of the industry, the “deregulatory” imprint of the new Government’s management had generated some concern, given that it is a very sensitive market that manages large collective assets. In line with this view, the official clarified that Its objective is “for the sector to work together and aim to meet our objectives”.
Inflation, a key element
On the other hand, he spoke about the need to end the inflation with the aim of consolidating the insurance system. “We are always around 3% of the Gross Domestic Product (GDP) as an industry “And that reflects that we are stagnating,” said the superintendent. But he stressed that “if you look at the glass as half full, the good thing about this low development is that we have great possibilities for growth.”
For Platethe insurance industry could grow twice as much in Argentina if inflation is successfully combated. “The problem is that inflation leaves a lot of rubbish under the carpet and that makes difficult to project in the short or medium term“, said.
On the other hand he spoke about The level of investments that the insurance industry has in Argentina: “Around US$11 million” We have, mainly, public securities, but there are countries that have eight times more,” Plate highlighted.
The direction of deregulation in insurance
And he highlighted some elements that are being promoted in the sector by the regulatory body to make the insurance industry grow, such as: the creation of the severance fund and progress towards a simplified policy“These are two issues that we are working on, also with the aim of decompressing the regulatory system,” he said.
He also stressed that Several regulations were lowered so that there would be no overregulation in the market.: “For example, the requirement for AP insurance in public transport was eliminated.” He also stressed the importance of moving away from what, for Plate, were “many years of delayed supervision” and said that the way of approaching the regulation of the sector must be changed. He even emphasized the idea that the insurance sector can “accompany, for example, the scheme of the Large Investment Incentive Regime (RIGI).”
Source: Ambito
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