May 19, 2020 / COVID-19 / Insurances
On March 26, 2020, the National Insurance and Bonding Commission (hereinafter, the “CNSF”) together with the Mexican Association of Institutions of Insurance (hereinafter, the “AMIS”) issued communication No. 030 through which it was agreed to ensure the attention to the policyholders, as well as the protection to the jobs of the insured sector, strengthening the continuity of the services provided by the Insurance Institutions to the population.
Therefore, they have determined to temporarily carry out the following actions:
- To extend the deadlines for information requests made to the Insurance Companies so that they can focus their efforts on their policyholders.
- To facilitate the delivery of Regulatory Reports that they must submit.
- To extend the deadline for the endorsement of certificates so that insurance agents can focus their work on customer service.
- To grant regulatory facilities so that Insurance Institutions that did not include or that excluded risks derived from COVID-19 in their policies may include such risks in their products.
- To provide regulatory facilities so that Insurance Institutions which require extending the deadlines for the payment of premiums by loyal and vulnerable policyholders may do so without any penalty or policy cancellation, for their benefit.
- To keep implementing exams for the certification of new agents in coordination with the Centro de Evaluación de Intermediarios (Intermediary Evaluation Center).
These actions are also aimed at protecting and benefiting the policyholders; on one hand, Insurance Institutions that do not contemplate or that exclude risks derived from COVID-19 in their Life or Major Medical Insurance products may incorporate them for free; and, the other hand, Insurance Institutions may extend the deadlines for the payment of premiums without the policyholder incurring the cancellation or penalty of the insurance. It is important to mention that such temporary implementations in favor of policyholders are not mandatory and they are up to the Insurance Institution.
In order for policyholders to know in a simple way the actions that have been established by the Insurance Sector, the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) prepared a comparative chart showing the different conditions granted by the Insurance Institutions due to COVID-19, such as means of access to medical care, waiting times, Hospitalization processes, coverage in the national territory or abroad, etc.
The temporary regulatory facilities implemented by the CNSF together with AMIS provide a great opportunity for Insurance Institutions to continue their normal operation and generate new products. Besides, some Insurance Institutions are launching innovative products to meet the needs of the population against the risks generated by COVID-19.
Additionally, for regulatory compliance of Insurance Institutions, in accordance with the Agreement published by the Federal Official Gazette on May 4, 2020, the CNSF suspends —from the date of publication of the Agreement and until May 30, 2020— the deadlines related to the formalities and procedures that are in progress and that are performed or must be performed, with exception of the Regularization Plans and the Self-Correction Programs. Such suspension will not apply to the information that must be provided to the Insurance Institutions and the notices or requirements that the administrative units may make, which had initiated inspection visits prior to April 7, 2020.