The new insurer, owned by the Teacher’s Life Insurance Society reported that transactions will begin no later than the second half of July, thus becoming the first competitor for the National Insurance Institute.
In an article in Nacion.com, journalist Mercedes Agüero wrote: "Among the new products it will offer are a variety of individual and group life insurance policies for all types of accidents, as well as funeral expenses."
The insurance market in Costa Rica was opened to competition with the approval of the Insurance Act, in force since August 7, 2008.
The Costa Rican regulating entity granted the insurance company approval to market their insurance policies today.
The general manager of the Magisterio life insurance company, Georgina Díaz, reported that the company is in the phase of the process in which they can notify the public and conduct marketing for their services.
Magisterio S.A. insurance is the first business authorized by SUPEN to operate in the market of national insurance that was up to now a monopoly of the state, INS.
The business is owned by Sociedad de Seguros de Vida del Magisterio, which already offered life insurance to the members of the teaching community and their relatives – a sector which included 22.000 individual clients and more than 40,000 in group insurance - in which they were the only exception to the monopoly of the National Institute of Insurance. Now, it will be authorized to offer its products to all of the domestic market, without restrictions.
Two new companies sold 17% of this sector of the Costa Rican market.
Panamerican Life and Seguros de Alico are the main rivals of the National Insurance Institute (INS), with a share of 14% of the personal insurance policies sold in the Costa Rican market, while other private companies control 4%.
The National Institute of Insurance of Costa Rica was not successful in formalizing an alliance with the businesses Alico and Pan-American Life to initiate a line of personal insurance.
Mercedes Agüero, in her article in Nacion.com, writes: "As a coalition of these companies, INS attempted to start a line of personal insurance, especially for life and medical expenses—an untapped niche market due to the 84-year state monopoly."
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