Private Insurance in Costa Rica Not Taking Off

The market dominance of the National Insurance Institute (INS), with 94% of total premium income, is, in the opinion of the Association of Private Insurance (AAP), a result of the supervision exercised by the Superintendency of Insurance (Sugese).

"'The interpretation we gave to the legislation was that the product was registered and could be sold.The reality is not like that, that's where we have a very big backlog," said Kevin Lucas, manager of the insurer Adisa.

This position is contradicted by Javier Cascante, Superintendent of Insurance, who noted that the consolidation of industry policies may take many years, as it relates to technical products, about which Costa Ricans have little knowledge", reported Nacion.com.

Source: Nacion.com

More on this topic

New Association of Insurance Companies in Costa Rica

February 2010

It groups all the insurance companies authorized to operate in the country.

Called ACAR (Costa Rican Association of Insurers and Reinsurers), it is chaired by Guillermo Constenla, head of INS, the National Insurance Institute.

“Constenla explained that the association has been created to assist the Insurance Superintendence in generating a more fluid insurance market”, reported El Economista.

Limitations of Insurance Privatisation in Costa Rica

May 2012

The total exclusivity requirement imposed by the National Institute of Insurance on agencies who sell their insurance, is an anticompetitive mechanism that is making it difficult for the market to open up.

In his blog " Mercado Seguro " in Elfinancierocr.com, attorney and insurance specialist Said Breedy analyzes the criteria issued by the Commission to Promote Competition (COPROCOM) on the exclusivity clause in agency contracts with the National Institute Insurance (INS) in place since 2007.

Adisa Insurer To Operate in Costa Rica

May 2010

The new insurance company was born as a result of the merger of “QBE del Istmo” Reinsurance Company and “Cooperativa Nacional de Educadores” (Coopenae).

“Aseguradora del Istmo Adisa SA” was authorized by the Costa Rican Insurance Superintendence to sell individual health and life insurance in the country.

Costa Rica’s Insurance Market

October 2011

In the newly privatised insurance market, companies are competing with the National Insurance Institute (INS in Spanish) to increase their portfolios.

Last June, according to the premium income figures, registered insurance lines and assets, INS was first, followed by Assa and Alico with its life and health insurance lines.