Microinsurance Conquers Costa Rica

Low-cost auto insurance policies are rapidly expanding the insurance culture in sectors of the population who can not access traditional policies.

Wednesday, June 4, 2014

Since the opening up of the national insurance market in 2008 and the incursion of microinsurance in 2010, 64 different types of products have been created. With low premiums as an incentive, in 2013 only 550,000 contracts were placed, representing 26% of all contracts sold by insurance companies in the country that year.

"'It was one of the new formats that came in with the opening, because before that there was not any form of latent insurance in the market. It is mass market insurance aimed at people who are not well off, and has and simple coverage. It was a way to deepen the market, bringing insurance coverage to more people ... Autoinsurace is ideal for people who have not had experience with insurance. They are small policies, with coverage of ¢2 million ($3.614). They are cheap because they cost up to ¢5,000 per month ($9), but get people out of trouble ... 'said Thomas Soley, General Superintendent of Insurance. "

"'The advantage is that they are sold through different channels, such as banks, with credit cards and debit cards; solidarity associations and cooperatives. In the end, the insured person has more in their hand and the number of products registered for auto insurance is growing ' concluded the official. "

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