Costa Rica: Small Insurance Agents Fading Away

The opening of the insurance market and new regulations are threatening the existence of small commercializing companies.

Thursday, August 20, 2009


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The Superintendence of Pensions (Supen) will oversee compliance with new rules regarding insurance brokerage. Such new rules will force companies to implement administrative and control structures for good corporate governance. These structures carry high costs, which can only be covered by large operations, far from the level at which many agents operate.

"Javier Cascante, Pension Superintendent, admitted that there is a transformation process in the environment. Brokers are required to have minimum standards, and regulations do not discriminate between large and small operators. They all have the same responsibilities, they represent INS, and cannot be differentiated. Brokers must have good codes of corporate governance, because they have a relationship with the insurance customer", reported Elfinancierocr.com.

More on this topic

Panama: More Risk Control for Insurers

September 2016

Insurers must make separate analysis for each insurance categories and when the results are deficient, they should have reserves.

Agreement 4 approved in April by the Superintendent of Insurance of Panama adds that when the results are deficit for two consecutive years, "... in addition to the reserve an analysis must be submitted to the regulator of the causes of the deficiency and a plan to correct itOnce the category has positive results again, the reserve can be released and the company can make use of it."

Pressure on Insurance Marketing Agents

October 2012

The CEO of the National Insurance Institute of Costa Rica, accepted in a parliamentary hearing that he put political conditions on officers to be reinstated.

A statement by the Legislative Assembly of Costa Rica reads:
HEAD OF INS ACCEPTS HAVING PRESSURED INSURANCE AGENTS

Costa Rica: Regulations for Insurance Brokers

October 2010

Rules to be complied with in order to become an Insurance Broker have been set.

Javier Cascante, director of the Insurance Superintendence , said the new provisions allow the transformation of an insurance agency into an insurance brokerage firm will be more agile and expeditious.

Mapfre-Mundial Starts Selling Insurance in Costa Rica

May 2010

Insurance company Mapfre-Mundial will start selling vehicle insurance this week; its product is called “Póliza Lider” (Spanish for Leader Policy).

It is the first to compete directly with the National Insurance Institute (INS) in the general insurance segment.

“In its first stage, the company will sell through its own sales force and two insurance brokers”, reported Elfinancierocr.com.

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