Peña’s insurance bill likely to pass Senate with amendments

Paraguay’s Senate is set to consider President Santiago Peña’s insurance bill on Wednesday, and the measure appears likely to advance with amendments recommended by two advisory committees.

The bill, listed as item seven on the Senate’s agenda for the 09:00 session, would replace the country’s current insurance framework under Law 827/96. Peña submitted the initiative to Congress on June 5, presenting it as an effort to modernize the sector and provide clearer rules for insurers.

The Senate’s Legislation, Codification, Justice and Labor Committee, chaired by Senator Derlis Maidana, and its Industry and Commerce Committee, led by Senator Luis Pettengill, both recommended approval with changes. The committees reviewed the proposal with representatives of the Ministry of Economy and Finance and the Central Bank of Paraguay.

Among the proposed revisions is new wording for conduct classified as minor offenses. The committees said the adjustment would provide greater legal certainty. They also examined provisions on serious offenses and bonds, along with a proposal to extend to 15 days the period for meeting obligations established in insurance policies.

The recommendations come as the bill faces debate over provisions that critics have warned could represent a step backward by treating bonds and insurance as equivalent. The Senate’s vote will determine whether the amended proposal moves forward.

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modernize and provide clear rules for all insurance activities