El Salvador insurance industry mulls micro-policies

In an effort to expand their market, insurers in El Salvador are weighing the possibility of following the example of their counterparts in Mexico who offer micro-policies that provide benefits of as much as US$8,000 for a one-dollar premium.

Thursday, May 15, 2008

"This type of insurance is very interesting because it brings our industry's benefits to poor people who don't figure on company payrolls," said Raúl Betancourt, executive director of the Salvadoran Insurers' Association (Ases).
But Betancourt said he doubted if micro-policies could be offered anytime soon. Legislation might be needed, he suggested, before insurance could be offered to people without a regular source of income.

More on this topic

Regional Micro-Insurance Supply Deficit

August 2013

In Central America microinsurance coverage is minimal, with rates well below the rest of Latin America.

Throughout the region, Guatemala leads they way in such services with 0.58%, followed by El Salvador (0.13%), Nicaragua (0.12%), Panama (0.06%) and Honduras (0.05%) . According to a study by the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB), Salvadorans prefer micro-life insurance (112,000 people) and health insurance (78,000 people).

Micro-insurance Policies for Central America

August 2010

The Inter-American Development Bank (IDB) and Central America's network of micro-financiers (REDCAMIF in Spanish) are to implement a business model for the development of micro-insurance in the region.

The agreement signed between the IDB and REDCAMIF is backed by a $2.4 million investment to develop the business model.

Micro-insurance Companies for Low-income Sectors

August 2010

For the past year Panama's insurance regulator has been reviewing how to create a micro-insurance market.

Luis Della Togna, head of the insurance regulator, discussed the idea but gave no indication of when micro-insurance companies could be introduced into the market.

"As a guide for Panama's insurance sector, Martha Rodríguez, commercial vice president of Mapfre Seguros Generales Colombia, explained that in Colombia 88% of the country is poor and therefore micro-insurance policies were created to supply this market," reports Laestrella.com.pa.

Regional insurers urged to offer micro-policies

May 2008

Alesia Rodríguez, one of the leading speakers at the Second Central American Insurance Symposium, suggested that companies in the region should offer micro-policies to the poor.

Micro-policies could cover health and funeral services, two of the main concerns of people of all social classes, Rodríguez said. Micro-policies for funeral expenses had proved particularly popular in other countries, she added.

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