According to a statement by ARSEG, the ban covers the underwriting of new risks, from the date the insurers were notified (17 February 2021).
"The measure resulted from a careful analysis of the management reports and accounts and other information provided by the Insurers to the Regulator, referring to the year of 2019 and previous years, and, in view of the other acts of supervision and monitoring of the exercise of the insurance activity" , justifies the regulator.
ARSEG found irregularities that constitute a violation of the legislation of the financial system (Basic Law for Financial Institutions), namely: non-observance of prudential relations and limits, violation of rules and duties and non-compliance with accounting standards and procedures.
According to the regulator, the suspension of authorization to conclude new insurance contracts allows insurers to "dedicate their best efforts" to reestablishing "adequate conditions of operability" and does not prejudice the obligation to comply with the commitments previously assumed in relation to insurance contracts. currently in force.
Insurers must submit a financing and recovery plan to ARSEG within 45 days.
