The insurance market is regulated through the Superintendent of Security Markets and Insurance Companies. Accounting practices reflect generally accepted accounting principles, and, in addition, the requirements as established by the Superintendent. These differ from generally accepted accounting principles in the United States in respect to accounting for monetary correction which takes into consideration the changing price levels in Chile.
The Chilean insurance market is characterized by a relatively large number of insurers for its size and a very competitive environment. The market was opened to foreign organizations, the government insurers were privatized, and the market liberalized under the military government. An increasing number of foreign insurers operate in Chile either in association with domestic organizations or independently. Workers' compensation and automobile personal accident insurance for drivers, passengers and third parties are compulsory.
In 2001, direct insurance premiums written in Chile totaled US $2.718 billion, with US $1.881 billion comprised of life insurance and US $837 comprised of nonlife insurance.