Insurance Companies or Insurers are legal persons who charge an amount of money called a premium, for the coverage of a risk set forth in the insurance policy. If the insured experiences a loss which is potentially covered by the insurance policy, the damage, capital, income or other will be compensated as convened in the insurance policy.
Mutual insurance companies are insurance companies formed by an association of people who divide their corresponding individual risks, setting the amount that each of them will contribute to the recovery of damages or collective losses.
An insurance is a contract whereby one party undertakes, by charging a premium, to indemnify another party for loss or damage, or deprivation of an expected profit that could result from an unexpected event.
Insurance Companies require Authorization from the Executive Power to operate for reasons of legality, timeliness and appropriateness, with the advice of the Superintendency of Financial Services. Additionally, they require authorization by the Superintendency to begin operating in the financial system.See requirements for authorization and permission to operate. (Art. 4 et seq of the RNSR).
For Insurance Companies, supervision is primarily aimed at protecting the stability and solvency of the entities, based on the systematic and regular implementation of different supervisory mechanisms, which seek to promote entities to manage their risks in a professional way (such as the risk of being used for money laundering or terrorist financing), to prepare financial reports in a timely and consistent manner, to operate with caution and maintain adequate compliance with regulations. Through these procedures, it is possible to have early warnings of problems and thus company managers can take appropriate measures to solve them in a timely manner.
For Mutual Insurance Companies, supervision of these entities is performed based on alerts.
In both cases, the role of protecting financial users is performed by responding to inquiries and denouncements.
SeeList of Insurance Companies authorized to operate in the Uruguayan financial system.