Peru's Superintendency of Banking, Insurance and Private Pension Funds (SBS) amended the market conduct regulations for the financial system and the insurance system to strengthen consumer protections related to credit life insurance (seguro de desgravamen) linked to loans. The changes restrict when institutions can make the purchase of this insurance a condition for granting credit and require clearer pre-contract communication of customers’ options. Under the new rules, requiring credit life insurance as a necessary condition is only permitted for housing mortgage loans. For other credit products, including consumer credit and credit cards, institutions must offer at least one alternative that does not condition contracting on purchasing credit life insurance, and must communicate this clearly before the credit is contracted. To increase transparency over amounts collected on behalf of insurers, institutions must publish on their websites detailed information on the premium cost, including the portion attributable to the financial institution’s commercialization activity. The SBS also classifies as abusive practices splitting the premium charge, conditioning endorsement of a life insurance policy replacing credit life insurance on upfront premium payment, requiring the lending institution to be the sole beneficiary, and delaying the handling of endorsement requests. Premiums may only be charged in the currency of the credit line granted. Separately, institutions must develop policies and procedures to serve persons with disabilities to support their access to, and use of, available channels. Financial system entities have 180 days to adapt to the SBS measures.

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