Name
Global FinTech Guide
Country _ Name
Uruguay
SectionTitle
InsurTech
Body
InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.

Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.

Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.

Introduction 

Attitude of the country towards InsurTech-services

No reservations; there is an increasing interest in these types of services.

Legal affairs

Obligations and requirements to provide InsurTech-services

Digital insurance brokers are not specifically regulated in Uruguay, as opposed to the companies providing insurance (i.e., Insurance Companies), which not only are regulated but also require a license from the CBU. 

The requirements to operate in our country as an Insurance Company are the following:

    A) To be located in Uruguay
    B) To be authorized by the Executive Power
    C) To be licensed by the CBU

  1. Incorporation
    2. According to section 2 of the Law No. 16.426 "public or private entities, in order to perform insurance activities shall be located in the country and must be authorized by the Executive Power with the advice of the Insurance and Reinsurance Superintendency (...)". Also, Section 120 of Law No. 19.678 provides that insurance companies´ names must contain expressions referring to the insurance services and activities.

    Moreover, please note that section 2 of Decree No. 354/94 provides that insurance or reinsurance activities may be carried out solely by:

    1.  The state-owned entity called “Banco de Seguros del Estado”; or
    2.  Corporations whose corporate capital is represented in nominatives shares and have included in their bylaws that the shares may only be transferred with the prior authorization of the Insurance and Reinsurance Superintendency. It is also required that such corporations include in the bylaws that their exclusive purpose is to perform insurance activities.

  2.   Authorization
    3. The applicant institution must submit a form together with the following information before the Executive Branch:

      i) Proof of a deposit equivalent to 20% of the basic capital requirement. Please note that the corporation´s capital depends on the branches or areas of insurance where it will operate.
      ii) Certified copy of the company’s bylaws.
      iii) The contractual capital may not be less than those applicable as minimum capital.
      iv) Information regarding the shareholders, specifying, among others, the percentage of participation in the company´s capital.
      v) Information regarding the board of directors, syndics, and key personnel. Please note that according to section 14 of Decree No. 354/94 only individuals are allowed to act as directors, not being possible for legal entities to do so.

  3.  License from the CBU
    4. Once obtained the authorization to operate as

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