Private health insurance in Ecuador has undergone significant transformations in recent years, driven by new regulations aimed at strengthening the sector’s solvency and transparency. Below, we explore the key aspects of this regulatory environment.
Legal and Regulatory Framework
The Organic Law regulating companies that finance comprehensive prepaid health care services and insurance companies offering medical assistance coverage establishes the foundations for the operation of businesses in this sector. This legislation aims to ensure the quality and sustainability of the services provided to users.
Mandatory Investments: Requirements and Challenges
In April 2025, the Financial Policy and Regulation Board issued Resolution No. JPRF-M-2025-0147, which establishes specific guidelines for the mandatory investments of private health insurance companies. Key aspects include:
- Allowed Instruments: Investments must be made in securities denominated in U.S. dollars, issued by entities within the national financial system, domestic private issuers, multilateral organizations, and sovereign governments.
- Diversification and Liquidity: Adequate diversification of the investment portfolio is required, prioritizing safety and liquidity, and avoiding excessive concentration in a single issuer or economic sector.
- Prohibition of Investments in Related Parties: Companies may not make investments in individuals or legal entities related by ownership, management, or kinship, in order to avoid conflicts of interest and ensure transparency.
Market Concentration: Implications and Challenges
The private health insurance market in Ecuador has shown signs of concentration, with a small number of companies dominating the provision of services, according to the Market Study Report prepared by the Superintendence of Economic Competition in July 2025.
This concentration may have implications for competition and the quality of services provided. The Superintendence of Economic Competition has issued recommendations to improve competition in this market, aiming to balance supply and protect the interests of users.
🔍 Conclusion
The regulatory environment for private health insurance in Ecuador is constantly evolving, with the aim of strengthening the sector’s solvency and transparency. Mandatory investments and market concentration are key aspects that companies must manage properly to ensure sustainability and provide high-quality services to users.
If you wish to explore any of these topics further or require specialized advice, do not hesitate to contact us. At Volrisk, we have a team of experts in actuarial, strategic, and financial consulting, committed to delivering customized solutions for your company in the Private Health Insurance sector.
en Medicina Prepagada