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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| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/271711468045560239/Mexico-Technical-note-on-the-pension-annuity-market http://hdl.handle.net/10986/37342 |
| Summary: | 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. |
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