The specialist Lloyd’s of London insurance and reinsurance marketplace has been granted a licence by the Nicaraguan insurance regulator, Superintendencia de Bancos y Otras Instituciones Financieras (SIBOIF), to operate as a foreign reinsurer in Nicaragua.
In July 2015 new regulation from SIBOIF saw the establishment of a register for foreign reinsurance entities and reinsurance brokers, mandating that all local insurers only do business with registered intermediaries and reinsurance companies.
The new resolution, No. CD-SIBOIF-897-2-JUL7-2015, did stress continued placement of cross-border reinsurance business with the Lloyd’s market, so long as a locally registered intermediary participated in all of the placements.
This meant that Lloyd’s coverholders needed to individually register with SIBOIF to bind business in the region. However, after obtaining a reinsurance licence from the regulator Lloyd’s coverholders are no longer required to individually register with the regulator.
“Additionally, Lloyd’s new authorisation allows for the appointment of local coverholders in Nicaragua,” explains Lloyd’s, in a recent Market Bulletin.