The Chile Financial Market Commission has published a second consultation on draft regulation to allow insurers to offer parametric insurance under the Fintech Act. The revised proposal incorporates feedback from the first consultation and expands the range of insurable risks, introduces additional permissible indices, and specifies payment trigger dates. The framework would set criteria for parametric insurance, including the indices that can be used, the risks that can be covered, and requirements to file policies in line with Article 11 of the Insurance Act. In parallel, the CMF proposes amendments to General Rule No. 306 on technical reserves for non-pension insurance to adjust how reserves are calculated for earthquake-specific parametric contracts, including methodologies for the Earthquake Catastrophe Reserve and the Unearned Risk Reserve, reflecting automatic index triggers, fixed insured sums, and binary payout structures. Comments on both proposals are open until July 25, 2025.

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