Eduardo Iturriaga, Director General of Mexico’s insurance regulator, the Comision Nacional de Seguros y Fianzas, recently reminded the market that purchasing foreign insurance from within Mexico is both a violation of the insurance law and a criminal offense that can carry penalties of a fine between 200 and 2,000 days of salary and a prison sentence of between 3 and 10 years.  The insurance law more specifically states that a person may not enter into an insurance contract with a foreign insurer while located within Mexico.  Despite the prohibition and the potential penalties, both the CNSF and Mexico’s insurance association assert that the practice continues in the market.

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