Peru's banking and insurance regulator, SBS, published on Dec. 9 updated rules for the calculation of reserves held by local insurance companies to face certain short-term risks.

Known as Resolution 6394-2016, which was approved by the regulator Dec. 7, the update is part of efforts by the SBS to protect the interests of insured clients, promote transparency in the insurance system and ensure its solvency, Gestión reported.

The new rules, which are in line with international standards, establish a methodology for calculating reserves, but also allow companies to use their own methodology for insurance products with certain characteristics.

In addition, the norm creates a new methodology for the calculation of reserves by business line, which should allow companies to face situations of higher-than-expected claims or operating costs.