Chilean insurers are optimistic that the central bank, Banco Central de Chile, will increase the limit on investment by insurance companies abroad in the first half of 2017, Diario Financiero reported.

Currently, insurers are only allowed to invest up to 20% of their technical reserves abroad, but a new proposal included in the government's bill to promote productivity, which was promulgated in October, calls for this limit to be increased.

Although the central bank has not yet determined the new limit on foreign investment, insurers have reportedly asked for it to be doubled to 40%.

As of September, Chilean insurers had investments abroad totaling over $7.3 billion, although as an industry only 14.1% of their total portfolio is invested in other countries, according to data from securities and insurance regulator SVS.

However, at least four local insurance companies are approaching the 20% limit, with Consorcio and Compañía de Seguros Confuturo SA nearly there, while BTG Pactual Seguros de Vida and MetLife Chile Seguros de Vida SA are at 17%, the report said.