This Note makes an analysis of Chilean and Peruvian experiences after carrying out similar, far-reaching reforms of their Disability and Survival Insurance (DSI) systems, and having now completed an operating period that enables drawing conclusions.

Both countries changed the bidding process for the DIS from a bidding process conducted by each one of the AFPs for their members, to a centralized bidding process for all members of the Pension System.

The result of the 5 centralized tenders carried out so far in Chile, and the 3 carried out in Peru, is clearly positive in terms of the cost of the DIS, the significant increase in the number of participating insurance companies, increased competition, the diversification of risk, greater transparency, easier market access by new AFPs, and the elimination of incentives for selecting members with a lower propensity for accidents.