On June 28, 2019, by means of Decree 447/2019 (“Decree”), a new regulation regarding insurance policies for environmental damages, as prescribed in Section 22 of General Environment Law 25,672, was established. Section 22 provides that all human or legal persons, who carry out any activity that may pose a threat to the environment, must hire an insurance policy broad enough to guarantee the financial capability to recompose the damages caused.
The Decree abrogated the previous regulations (Decree 1638/2012), and established, in addition to the Insurance Policy for Environmental Damage of Collective Incidence, the possibility to hire the Insurance Policy with Risk Reallocation; or other financial instruments or insurance plans approved by the Governmental Secretariat of Environment and Sustainable Development (“Secretariat of Environment”) and the National Insurance Superintendence (“Insurance Superintendence”).
The Decree repealed the guidelines and parameters established in the previous regulations, which determined the content of the insurance policies elaborated by the Insurance Superintendence, and entrusted the issuance of complementary regulations to the Secretariat of Environment and the Insurance Superintendence. Consequently, these entities shall then issue the corresponding regulations in the future.
On the other hand, on June 28, 2019, the Secretariat of Environment issued Resolution No. 238/2019, whereby it (i) created the Comprehensive System of Management of Environmental Guarantees (“SIGGA”, for its spanish acronym), which will unify the information of said guarantees, providing that its implementation is compulsory for all authorized insurance companies; and (ii) established that digital insurance policies, issued through the SIGGA, will be considered valid.