Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market

This paper analyzes the performance and development of the Mexican pension annuity market in Mexico that stemmed from the 1997 pension reform. The Mexican experience displays interesting characteristics that provide lessons for other countries that...

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Main Authors:	World Bank, International Monetary Fund
Format:	Report
Language:	English en_US
Published:	Washington, DC : World Bank 2022
Subjects:	PENSION ANNUITY MARKET PENSION REFORM MARKET STRUCTURE MARKET GROWTH PRODUCTS AND PRICING COMPETITION LIABILITIES ASSETS AND INVESTMENT MARKET PERFORMANCE DEVELOPMENT PROSPECTS REGULATORY FRAMEWORK
Online Access:	http://documents.worldbank.org/curated/en/271711468045560239/Mexico-Technical-note-on-the-pension-annuity-market http://hdl.handle.net/10986/37342

id	okr-10986-37342
recordtype	oai_dc
spelling	okr-10986-373422022-04-28T05:10:35Z Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market World Bank International Monetary Fund PENSION ANNUITY MARKET PENSION REFORM MARKET STRUCTURE MARKET GROWTH PRODUCTS AND PRICING COMPETITION LIABILITIES ASSETS AND INVESTMENT MARKET PERFORMANCE DEVELOPMENT PROSPECTS REGULATORY FRAMEWORK This paper analyzes the performance and development of the Mexican pension annuity market in Mexico that stemmed from the 1997 pension reform. The Mexican experience displays interesting characteristics that provide lessons for other countries that still need to design the decumulation phase of their newly established second pillars. At the same, time it raises some technical and policy concerns that need addressing as they could hamper, in the future, the healthy development of the market. This paper benefited from interviews with officials in the Insurance Supervisory Authority (CNSF), the Ministry of Finance (SHCP), the Pension Supervisory Authority (CONSAR), and the Social Security Institute (IMSS) as well as with management of specialized annuity companies. The paper is structured as follows: section one gives introduction; section two briefly summarizes the 1992 and 1997 pension reforms from which the pension annuity market derives; section three analyzes the evolution of the industrial organization, annuity product design and competition, the evolution of assets and liabilities and investment, as well as the regulatory framework for the aforementioned items, and the performance of the market; section four analyzes the development prospects of the market in light of the more recent 2001 and 2002 reforms of the 1997 social security law; and section five gives conclusions and policy recommendations. 2022-04-27T14:17:24Z 2022-04-27T14:17:24Z 2006-11 Report http://documents.worldbank.org/curated/en/271711468045560239/Mexico-Technical-note-on-the-pension-annuity-market http://hdl.handle.net/10986/37342 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC : World Bank Economic & Sector Work Economic & Sector Work :: Financial Sector Assessment Program (FSAP) Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	PENSION ANNUITY MARKET PENSION REFORM MARKET STRUCTURE MARKET GROWTH PRODUCTS AND PRICING COMPETITION LIABILITIES ASSETS AND INVESTMENT MARKET PERFORMANCE DEVELOPMENT PROSPECTS REGULATORY FRAMEWORK
spellingShingle	PENSION ANNUITY MARKET PENSION REFORM MARKET STRUCTURE MARKET GROWTH PRODUCTS AND PRICING COMPETITION LIABILITIES ASSETS AND INVESTMENT MARKET PERFORMANCE DEVELOPMENT PROSPECTS REGULATORY FRAMEWORK World Bank International Monetary Fund Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market
geographic_facet	Latin America & Caribbean Mexico
description	This paper analyzes the performance and development of the Mexican pension annuity market in Mexico that stemmed from the 1997 pension reform. The Mexican experience displays interesting characteristics that provide lessons for other countries that still need to design the decumulation phase of their newly established second pillars. At the same, time it raises some technical and policy concerns that need addressing as they could hamper, in the future, the healthy development of the market. This paper benefited from interviews with officials in the Insurance Supervisory Authority (CNSF), the Ministry of Finance (SHCP), the Pension Supervisory Authority (CONSAR), and the Social Security Institute (IMSS) as well as with management of specialized annuity companies. The paper is structured as follows: section one gives introduction; section two briefly summarizes the 1992 and 1997 pension reforms from which the pension annuity market derives; section three analyzes the evolution of the industrial organization, annuity product design and competition, the evolution of assets and liabilities and investment, as well as the regulatory framework for the aforementioned items, and the performance of the market; section four analyzes the development prospects of the market in light of the more recent 2001 and 2002 reforms of the 1997 social security law; and section five gives conclusions and policy recommendations.
format	Report
author	World Bank International Monetary Fund
author_facet	World Bank International Monetary Fund
author_sort	World Bank
title	Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market
title_short	Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market
title_full	Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market
title_fullStr	Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market
title_full_unstemmed	Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market
title_sort	mexico financial sector assessment program update : technical note on the pension annuity market
publisher	Washington, DC : World Bank
publishDate	2022
url	http://documents.worldbank.org/curated/en/271711468045560239/Mexico-Technical-note-on-the-pension-annuity-market http://hdl.handle.net/10986/37342
_version_	1764484482584281088

Mexico Financial Sector Assessment Program Update : Technical Note on the Pension Annuity Market

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