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Environment
Argentina
Overview
Including: Introduction; Federal regulations; Other considerations.
Legislature Protects Water Resources
The Water Resources Management Act provides basic standards for the preservation and efficient use of the country's water resources. It applies to natural and manmade bodies of water, imposing requirements on environmental authorities and creating an obligation to obtain a permit in order to use water.
Hazardous Substances to Be Phased Out
In 2002 Argentina passed legislation aimed at eliminating polychlorinated biphenyls (PCBs) from the country by 2010. Among other things, the law has created a register of possessors of PCBs, requires possessors to carry insurance against damage to the environment and human health, and establishes strict labelling requirements.
New Statute on Handling Industrial Waste
While the Industrial Waste Law 2002 is similar to the previous Hazardous Waste Act 1999, the new statute is applicable nationwide. Furthermore, the statute provides that industrial waste may be transported between provinces only if the jurisdictions involved have entered into a prior agreement establishing the conditions of transportation.
Regulatory Update
Recent new environmental legislation includes a resolution banning the use of asbestos in certain products and a plan to set minimum national environmental standards for hazardous waste produced by industry and related activities.
End of the Line for PCBs
The legislation on polychlorinated biphenyls (PCBs) in Argentina and the implications for industrial facilities using these substances have recently undergone some dramatic changes.
The Disposal of Pathogenic Waste
Pathogenic waste is treated as hazardous waste in Argentina. This update describes the legislation that has been implemented to deal with pathogenic waste, both at a national level and in Buenos Aires itself.
Insurance & Reinsurance
Argentina
Under the 2012-2020 Insurance Plan a percentage of the investment portfolios of insurance companies will be redirected to mid-term and long-term productive and infrastructure projects. However, the insurance regulator recently stated that redirection of insurers' investments in the real economy is just one of the plan's goals. The insurance and reinsurance market should therefore prepare itself for new regulation.
Government launches 2012-2020 Insurance Plan
The president and the Ministry of Economy recently announced the 2012-2020 Insurance Plan. Under the plan, a percentage of insurance companies' investment portfolios must be redirected to mid-term and long-term productive and infrastructure projects, among other things. How this plan will evolve and its real impact on the industry are expected to become evident in the next few months.
The insurance regulator recently issued a new resolution that focuses on the need to assign a specific code to new reinsurance or retrocession contracts. The resolution provides that all reinsurance or retrocession contracts entered into by insurance companies or local reinsurers must be identified by a reinsurance operation code. The code must be submitted before the contract enters into force.
Admitted reinsurers are authorised to offer reinsurance from their head offices only on a per-exception basis, and may freely offer retrocession coverage to 'local' reinsurers. The insurance regulator recently introduced a controversial requirement for admitted reinsurers to register a permanent establishment in Argentina. The registration process at the Buenos Aires Office of Companies has been plagued with difficulties.
Under the Minimum Capital Requirements Regulation, reinsurers that start the registration process for operation as a local reinsurer will shortly be required to deposit an initial capital equal to twice the minimum capital (which can be later reduced). To avoid this increase, international reinsurers that wish to become local reinsurers are advised to begin the registration process before the change.
The insurance regulator recently issued a resolution that modifies the regime for operating as a reinsurance broker in Argentina. The resolution builds on changes to the regulatory framework that were introduced in early 2011 and substantially changed the Argentine reinsurance market.
