CHL CMF issued public consultation re complementary regulations and adjustments that are part of the implementation process of the new mortality tables (TM-2020).
The new mortality tables that will be in force for the period 2023-2029, in accordance with the provisions of DL No. 3,500, from 1980 and DFL No. 251, from 1931.
Draft Adjustments Highlights
The complementary regulations and necessary adjustments for the implementation process of the new tables refer to modifications to General Standard (NCG).
Draft NCG updates NCG No. 318's instructions on application of IFRS standards in the constitution of technical reserves of life annuity and disability and survival insurance.
Also, draft Circular gives instructions on application of tables CB-H-2020 (Men), MI-H-2020 (Men), RV-M-2020 (Women), BM-2020 (Women), and MI-M-2020 (Women).
Both NCG and Circular address aspects of implementation of TM-2020.
Consultation
Comments on the draft regulations in consultation will be accepted until Feb. 22, 2023.
Feb. 2023 CHL CMF Final Mortality Tables Update
On Feb. 24, 2023, CMF issued regulations with new mortality tables post consultation
Mortality tables have two components: estimated mortality rate based on the experience observed in the most recent period of the population of pensioners.
Also the improvement factors that adjust these rates to the extent that mortality decreases as a result of medical advances and improvements in the quality of life.
Higher mortality experienced due to Covid during 2020-22 should not be considered.
Regulation 495 and 306 with new mortality tables will come into force on Jul. 1, 2023.
Jul. 2023, CHL CMF Mortality Tables
On Jul. 3, 2023, CHL CMF published public consultation on regulations that establish new mortality tables for non-pension insurance, which modify Regulation 306.
The proposal will replace the current M-95 mortality tables with new M-2016 tables.
Proposed new mortality tables, M-2016, will apply to the calculation of technical reserves of long-term life insurance contracts with a validity of more than four years.
Impact information and comments to the draft will be received until Nov. 3, 2023.
Once standard is issued, it will enter into force 120 days after the date of its issuance.
Apr. 2024 CHL CMF Second Consultation
On Apr. 8, 2024, CHL CMF issued second consultation period on new mortality tables.
Also published regulatory report explaining reasoning of new transitional provision.
Consulting on the transitional provision establishing three years for implementation of the new mortality tables (M-2016) for those policies in force as of Sep. 30, 2024.
For policies issued after Oct. 1, 2024, M-2016 tables will be applied immediately.
Adjustment aims to apply prudential criterion in implementation of the M-2016 tables.
Life insurance companies with approved mortality tables must continue using their own
Comments on the second consultation are due on or before Apr. 22, 2024.
After consultation and issuance of the standard, it will come into force after 120 days.
Also, CHL CMF published regulatory report whose main objective is to replace the M-95 tables, currently in force, established for the calculation of mathematical reserves.
Mortality tables aim to reflect changes in life expectancy of the population so insurance companies can estimate technical reserves they must constitute to ensure fulfillment.
This regulation becomes effective as of Sep. 30, 2024.
