Published and draft legislation - Peru

Affordable microinsurance for low income people

SBS Ruling 2829/2016

After pre-publishing the draft and receiving feedback from the general public, the Micro-insurance Policy Regulations were published on 20th May 2016 defining micro-insurance as “insurance available to low-income individuals and/or micro-entrepreneurs to cover personal and/or equity risk by paying premiums in proportion to the risks covered by the policy, as an individual or group or collective insurance policy with the following specifications:

a. Coverage designed to meet the protection needs of low-income people and/or micro-entrepreneurs;

b. Marketed by sales agents with a target public including low-income individuals and/or    micro-entrepreneurs;

c. The monthly premium may not exceed two percent (2%) of the minimum living wage.”

The regulation –as discussed in bill form in Issue Nº 5 of Progreso – establishes standards to enhance the identification of micro-insurance by modifying parameters, including the definition and specifications of micro-insurance; marketing conditions and the procedure for registering micro-insurance policy forms.

The provisions on selling contemplate the possibility of using electronic insurance policies and remote marketing systems. It also makes it possible to use proof of payment as proof of contract, when the payment document includes relevant information on the policy conditions.

Finally, the regulation allows the sale of micro-insurance over the ATM’s of banks and electronic-money issuers.