Opportunity as public sector business is opened to private sector

The major concern of Uruguay’s broker market at present is the new tax legislation introduced in December 2006 which, it is feared, will have a major financial and psychological impact on the middle class as it introduces personal income tax for the first time. Medium and high-income brokers expect to be badly affected by the new law despite the fact that it eliminates the commission tax of 9% that has been payable on all commissions

In August 2007, there were 16 joint stock insurance companies operating in Uruguay of which seven were non-life, six composites (including the state-owned, Banco de Seguros del Estado/BSE) and three life only offices. There are also 10 mutuals registered with the central bank. There are no trends towards the rationalisation of the market such as insurers being absorbed into financial groups. As most companies are foreign owned, any mergers or acquisitions are likely to take place at international level rather than locally.