By means of External Circular 006 of 2025, the Financial Superintendency of Colombia (the “SFC”) completed the regulatory streamlining process and reissued the Legal Basic Circular (the “LBC”), with the aim of consolidating, updating, and simplifying the regulatory framework applicable to its supervised entities.

Below, we highlight some of the main modifications introduced to the regime applicable to insurers, reinsurers, and insurance intermediaries:

• 1.    Legal references

References to amended regulations were updated, and other references to repealed regulations were eliminated.

• Chapter III, Title II, Part I

1. Register of Foreign Reinsurers and Reinsurance Brokers (REACOEX)
   
   Section 2.2.1, item (i): The new regulation expressly states that foreign reinsurers with underwriting agencies (coverholders) authorized to accept or cede reinsurance liabilities must inform the SFC of the criteria or policies used for their selection and approval.
   
   The SFC also clarified that such agencies (i) must be entities incorporated abroad, (ii) must act solely on behalf of and representing the reinsurer that authorizes them, and (iii) must operate exclusively from abroad.
   
   Sections 2.2.1 and 2.2.2, item (d): Foreign reinsurers and reinsurance brokers requesting registration with REACOEX must now submit a certificate attesting to the existence of mandatory anti-money laundering and counter-terrorism financing regulations in their country of origin.

• Chapter IV, Title II, Part I

1. Register of Foreign Agricultural Insurance Entities and Intermediaries (RAISAX)
   
   Section 2.1.1, item (d): Foreign insurers and intermediaries seeking registration with RAISAX must also, as a new requirement, provide evidence of the existence of mandatory anti-money laundering and counter-terrorism financing regulations in their country of origin.

• Chapter V, Title II, Part I

1. Register of Foreign Insurers Offering Insurance Related to International Maritime Transport, International Commercial Aviation, and Space Launch and Transport (including Satellites), as well as Insurance Covering Goods in International Transit (RAIMAT)
   
   Section 3.2: A restriction was introduced for foreign insurers registered with RAIMAT whose registration is cancelled by the SFC due to failures in the submission of information, grounds for dissolution, or the imposition of administrative intervention measures. In such cases, the entity will not be allowed to submit a new registration request to RAIMAT for a period of two years following the date of cancellation.

• Chapter II, Title IV, Part II

1. Lines of business and insurance policy conditions
   
   Section 1.1: The criteria regarding “materiality” in coverages from unauthorized lines of business was clarified. The possibility of offering coverages belonging to other lines of business under the lines already authorized to the insurer, without requiring additional approval, is maintained.
   
   However, the new LBC specifies that “materiality” (which requires a request for authorization) is now measured considering the total commercial premium of the insurance, as established in the technical note, and not based on the value of the other coverages, as was indicated in the previous regulation.
   
   Section 1.2.1.3.5: Regarding the term for the payment of the indemnity, it was clarified that this must be counted from the date on which the insured proves their entitlement, and not from the filing of the claim, as was provided in the previous regulation.
    
2. Criteria and minimum elements of technical notes
   
   Section 1.8: The insurers receiving a portfolio from another entity must retain the technical note under which the transferred insurance contracts were issued.
    
3. Control of claims reserves
   
   Section 2.2.1.1.10: Regarding the information that must be kept in the subsidiary ledger or “claims registry book”, it was clarified that among the information to be included in this book, the claimed amount must be understood as “the amount the beneficiary intends to receive due to the occurrence of the loss, without exceeding the insured amount.”
    
4. Mortality statistics
   
   Former Section 3.6.1.1: The sub-section referring to mortality statistics was eliminated.
    
5. Individuals engaged in insurance intermediation
   
   Section 7.1: It was clarified that individuals engaged in insurance intermediation may be employees, agents, or individuals affiliated with an agent or insurance agency. All of them must comply with the suitability requirements to engage in insurance intermediation.
   
   Section 7.3.3.5: It was clarified that, in the event of non-compliance with the code of ethics and conduct, the insurer must initiate a disciplinary procedure, in accordance with the provisions set forth in sub-section 3.1.1 of Chapter IV, Title I, Part I of the LBC, which was not expressly stated in the previous regulation.

For more information, please contact our insurance and reinsurance team.