Chile

Axco provides details on the life insurance sector including Chilean market participants, reinsurance and distribution channels. The reports describe classes of business from both individual and group life such as whole life, endowment, term life and unit-linked.
Information on non-life classes for example critical illness and private medical insurance.

The report describes the public and private healthcare system in Chile, the scope of cover, accessibility financing and provides an analysis of how the public and private systems complement each other.

Axco reports on the three pillars of Chilean pension provision.

• State pension benefits including benefit calculations and eligibility criteria 
• Workplace pension provision; types of schemes calculations eligibility and; tax implications
• Voluntary individual pension provision, type of products and tax implications

The Chile report provides an in-depth analysis of the regulatory framework governing social security as well as details on financing and eligibility. Information includes but is not limited to

• state pensions,
• permanent disability benefit
• occupational accident and disease
• maternity and paternity payments 

The Chilean life assurance market is a moderate size, 3rd in Latin America in 2019, smaller than neighbours Mexico and Brazil (each with significantly higher populations), but larger than neighbours Argentina, Peru and Bolivia, and 31st in the world.

It is a mature market, first established in the 1820s. Penetration is the highest in the region by a significant percentage. Both size and penetration are due to the mandatory contributory ....

Since 1981 a mandatory pension system exists in Chile, consisting of individual accounts (capitalizacion), so that, in theory, penetration rates are high. Subsequent and proposed reforms have been introduced/mooted to address the insufficiency of pension incomes, introduce a top-up subsidy and a non-contributory basic solidarity pension. Concerns persist for the sustainability of the system, given low contribution rates, gaps in contributions and segments of the population who are not members of the system at all.

It is too early to quantify the full effect that the COVID-19 pandemic will have on the social security system....

Chile has a dual healthcare system whereby mandatory healthcare is provided by both the public and private sectors. All employed persons in Chile, with only a few exceptions, are required to make a mandatory 7% contribution of salary towards either the public health scheme run by FONASA or to an ISAPRE. Those workers that do not choose an ISAPRE are automatically enrolled with FONASA.

Law No 21.133 of 2 February 2019 established a new compulsory and gradual contribution mechanism to incorporate the self-employed into pensions ....