Following applicable legislation, all Colombian flag vessels must be insured under policies issued by Colombian Insurance Companies, so this affects the P & I Clubs and fixed premiums facilities that are currently covering Colombian ships. This rule is also applicable to all properties located in Colombian territory. Therefore members or assureds of Clubs and fixed facilities covering Port Authorities and Port Operators have to go through a very complex process in which a Colombian Insurance Company fronted all the Club’s members or fixed facilities policies and reassured the risks 100% on the London market A&A Multiprime worked very hard along side the Club and the local insurance company to accomplish this fronting and have all the required infrastructure to assist you. The good news …. Law 1328 /2009 has open the doors for foreign insurers to do business in Colombia directly , no intermediary will be needed and the only requirement will be for the foreign insurer to register in Colombia ..the not so good news…. ¡ the law will only come in force 4 years after .. this is next 2013…… ¡ In the meantime the following requirements must be complied for a foreign underwriter to be able to insure in Colombia using a fronting company , as required by the Financial Superintendency:
1.Full styles of the reinsurer.
2.Certificate of the legal existence of the company issued by the country of origin’s competent authority stating the company’s capacity to reinsure risks.
3.To inform whether the company is subject to surveillance by a competent authority in the country of origin.
4.To certify a paid up capital of USD 3,500,000.oo.
- To obtain a minimum rating as follows:
- Standard & Poor’s BBB-
b. A.M. Best B+
- Moody’s BBB-
- Duff and Phelps Baa3
- To provide all Statement of Accounts of the last three years duly consularized and translated to Spanish. Please let us know if you have any further queries in this respect, we’ll be very happy to assist!