CMF publishes for second consultation regulation on reinsurance operations for life annuities through foreign entities

• The initiative also covers fund management authorization for reinsurers.
• The proposal aims to enable more efficient and diversified management of risks associated with long-term pension obligations within a prudential framework that adequately mitigates the risks arising from this activity.

August 3, 2026 - The Financial Market Commission (CMF) published for consultation today, and for a second 4-week timeframe, a regulatory proposal about life annuity reinsurance through foreign reinsurance entities, as well as authorizing fund management for reinsurers.

Following the first public consultation, held from April 20 to June 15, 2026, the following adjustments were made:

• Authorize supplementary fund management activities on behalf of reinsurers for life insurance companies that engage in such operations.
• Raise the maximum deduction limit for technical reserves from 20 to 30 percent, adjusting its calculation to reflect the total annuity portfolio.
• Eliminate the cedant's right to unilaterally terminate the reinsurance contract.
• Align the valuation of segregated funds with that of ceded technical reserves, establishing that the former be accounted for in accordance with CMF regulations for the purpose of determining their adequacy.

These amendments will help create more favorable conditions to develop and expand the annuity reinsurance market while maintaining prudential safeguards appropriate to the risks associated with this activity.

Interested parties can access the regulatory proposal in detail through the Regulations under Consultation section of the CMF website.