Costa Rica's insurance market, which recently ceased to be a monopoly of the National Insurance Institute (INS), and became a free market where new companies have been encouraged to enter, is still in its infancy.
Only 21% of the population has a life insurance policy, and about half do not have coverage for cars, according to a study by El Financiero.
This is compounded by ignorance about the topic that dominates some sectors of society, where in some cases, such as car insurance, people only have policies providing cover for third parties.
This snapshot of the insurance market provides interesting results for new entrants who are just getting to know the marketplace, and may try to position themselves in niches that are still neglected.
In an article elfinancierocr.com, Gustavo Cubillo, marketing specialist at the School of Business Administration at the Instituto Tecnologico de Costa Rica said that "the state agency still has a margin in their favor. As well as the resistance to change being shown by policy holders, it is likely that consumers will view having to change companies as costly in terms of time and the risks that they face.
Another aspect that companies need to be careful about if they want to capture some of those percentages of people without insurance, will be consumer confidence, especially the new entrants. If promises are broken, attracting customers will be doubly difficult . "
Source: elfinancierocr.com
More on this topic
April 2012
The State of Guatemala will insure 9 hydroelectric stations and 65 transmission substations, paying the most expensive annual insurance bill in the local market.
The National Institute of Electrification (INDE) awarded a policy of Q37, 8million ($4.86 million) to Aseguradora Rural to insure against all risks and terrorism, 9 hydro and 65 transmission substations, which are some of the most valuable pieces of public infrastructure in the country.
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