Keywords
Insurance contracts
Solvency II
Colombian Prudencial Regulation
How to Cite
Abstract
This document analyzes two recent regulatory adjustments for the insurance sector in Colombia. First, Decree 1271 of 2024 enables the convergence with IFRS 17, Insurance Contracts. Second, Decree 1272 of 2024 introduces modifications to the technical reserves of insurance entities to align with IFRS 17 and implement risk-based regulation in accordance with the Solvency II Directive. Both regulatory frameworks are scheduled for implementation starting January 1, 2027.
The convergence with IFRS 17, Insurance Contracts, aims to improve the estimation, comparability, and disclosure of liabilities for entities issuing insurance contracts. Meanwhile, the adjustments to the technical reserves framework are intended to create alignment among the prudential regime, IFRS 17, and a risk-based regulatory approach.
The content of the two decrees resulted from a study initiated in 2021 by the national government, through the Financial Regulation Unit, in collaboration with the Financial Superintendence of Colombia and the Ministry of Industry, Trade, and Tourism, with the support of an international consultant and the participation of entities issuing insurance contracts, including insurers.
Presidencia de la República de Colombia (14 de diciembre de 2015). Decreto 2420. Diario Oficial año CLI. N. 49726.
European Insurance and Occupational Pensions Authority – EIOPA. Directiva 138/2009/EC de Solvencia II.
Unidad de Regulación Financiera. (2021). Hoja de ruta para la modernización de la regulación del sector asegurador en Colombia. Disponible en https://www.urf.gov.co/webcenter/ShowProperty?nodeId=%2FConexionContent%2FWCC_CLUSTER-168205%2F%2FidcPrimaryFile&revision=latestreleased
Congreso de la República de Colombia (13 de julio de 2009). Ley 1314. Diario Oficial año CXLIV. N. 47409.
Consejo Técnico de la Contaduría Pública (2023). Recomendación técnica de convergencia a la NIIF 17.
IASB (2017). Norma Internacional de Información Financiera - NIIF 17.
Consejo Técnico de la Contaduría Pública (2023). Recomendación técnica de convergencia a la NIIF 17.
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