Customers who are guided by immediacy and technology, who are also more focused on travel than buying health or life insurance, force insurers to reinvent their processes to continue increasing their sales.
Because the population group known as the "millennials," which is made up of customers who like to keep up with the buying process and are not willing to wait, companies must transform to keep up with their sales pace.
Because Panama changed the date for submitting the first Quantitative Impact Study to January 30, 2020, the entry into force of the International Financial Reporting Standards will also be postponed.
The Quantitative Impact Study (ECI1) and the second ECI2 are required by Article 296 of Law 12 of April 3, 2012. After the request made by the association of insurers to the Superintendence of Insurance to postpone its delivery, an extension was granted, being January 30, 2020 the date for ECI1 and for the case of ECI2 it must be delivered no later than April 30, 2021.
The Panamanian union proposed to the authorities to modify the deadline established for the application of the International Financial Reporting Standards, due to the fact that it is not yet clear how they will be implemented.
On January 1, 2021, the beginning of the application of the International Financial Reporting Standards (Niif 17) is scheduled; however, due to the fact that the regulatory framework is still being discussed at the international level and is not firm, the Panamanian Association of Insurers (Apadea) requested the Superintendence of Insurance and Reinsurance of Panama (Scarp) to extend the term.
From January to April of this year, $105 million in auto premiums were underwritten in Panama, 7% more than was reported in the same period in 2018, which is partly because of the modifications to the basic traffic accident insurance.
The latest report of the General Comptroller of the Republic states that between the first quarter of 2018 and the same period of 2019, the value of the premiums subscribed in the automobile branch grew from $98.1 million to $104.5 million, which is equivalent to a 6.5% increase.
Because of vehicle and health insurance performance, premiums paid in Panama last year totaled $1.562 million, 6% more than in 2017.
Preliminary figures from the Superintendence of Insurance and Reinsurance detail that last year income from vehicle insurance totaled $321 million and increased 9% with respect to 2017.
During 2018, premiums paid for health insurance totaled $312 million, 7.8% more than reported in 2017.
In Panama, industry authorities have ordered insurers to refrain from applying increases to individual premiums that are not contemplated or authorized in health policies.
According to the order given by the Superintendency of Insurance and Reinsurance, insurers that made increases to policies that were unforeseen and not authorized by the regulator, in the last twelve months, will have to refund the excess to customers.
Three insurers distributed 52% of the premiums generated in January of this year, which in total amounted to $129 million.
In the first month of 2018, the three insurance companies that subscribed the largest proportion of the premiums were Assa Compañía de Seguros, Compañía Internacional de Seguros and Mapfre Panamá, with $32 million, $19 million and $16 million, respectively.
In 2017 in Panama, premiums totaled $1.471 billion, 5% more than in 2016, but the loss ratio in fires and floods increased almost four times.
According to a report by the Superintendency of Insurance and Reinsurance of Panama (SSRP), in 2017 market growth was accompanied by an increase in claims, as insurance companies paid out $119 million for the fire and flood coverage policies, a figure that exceeds the $26 million disbursed in 2016 by 365%.
A new law is being prepared that will change the capital requirements and other requirements for granting licenses to reinsurers operating in the country.
The proposal by the Insurance and Reinsurance Superintendency of Panama was revealed weeks after the intervention was ordered into the reinsurer Istmo Compañía de Reaseguros.This process was not the only one in 2016, as the company Seguros Confianza was also taken over in September.
The insurance company founded on Chilean and Venezuelan capital had been subject of an intervention by the Superintendency of Insurance and Reinsurance of Panama in September, after it was detected that there was insufficient equity.
Prensa.com reports that "...This is thesecond liquidation made by the regulator in a year.In October 2015, theSuperintendent also ordered the same to be doneto Seguros Constitución, also of Venezuelan capital, after financial and administrative breaches were detected."
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 aredeficit 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 it. Once the category has positive results again, the reserve can be released and the company can make use of it."
Growth in claims was double the growth in premiums in December 2015 in the Panamanian insurance market.
Premiums in Panama in December 2015 remained at very similar levels to those of the same month in 2014, according to the Insurance and Reinsurance Regulator in Panama. Accumulated premiums last December amounted to $1.385 million, 1.18% more than in December 2014.
It has been announced that three insurers with the largest share in the market have requested authorization from the regulator to make adjustments of up to 12% on premiums for health insurance policies.
The Superintendent of Insurance and Reinsurance, José Joaquín Riesen, told Prensa.com that three companies asked to be able to increase premiums for health policies, arguing that the costs of medical services have increased by at least 10% in recent years, while premiums, deductibles and coinsurance have remained in the same price ranges.
The Insurance Regulator has ordered that administrative and operational control be taken of the Venezuelan company Seguros Constitución, for allegedly failing to comply with a regularization plan required by the regulator.
The company began operations in Panama in 2008, "... it has about $2 million in cumulative premiums and ranked 12th out of the 30 insurers in the country in terms of total policies," according to Prensa.com.
In the first quarter of the year, total premiums in the country totaled $338 million, 5% more than in the same period last year, driven by automobile insurance.
Vehicle insurance is the most in demand, reporting $63 million in premiums from January to March 2015, representing an increase of 11.8% compared to the same period last year. The second sector reporting the most growth is health, with premiums of $57.3 million, ie an increase of 6% and finally the premiums for group life reported $41 million, according to the Superintendency of Insurance and Reinsurance in Panama.