Income from voluntary insurance premiums grew by 18% in relation to June 2015, reaching $490 million.
From a monthly report by the Superintendent of Insurance:
The evolution of compulsory insurance in respect to previous months is: 32% growth that corresponds to an increase of ¢38.6 billion colones in SOA, concentrated in January of this period as a result of a change in the accounting methodology, specifically, for the SOA period, premiums that were previously registered in December of each year were recorded in January 2016 of this year.RT premiums decreased by ¢15.6 billion colones.
Through a trust with a state insurer $35 million will be used to finance the construction of a major road link in the east of the Greater Metropolitan Area.
The stretch of road between Hacienda Vieja, Curridabat, and the Garantías Sociales roundabout in Zapote, will be developed using a trust, explained Carlos Villanta, Minister of Public Works and Transportation, adding that"... negotiations with the National Insurance Institute are very advanced and, if everything goes correctly, construction could start in about 10 months time. "
The National Insurance Institute has announced it will modify two regulations so that non irrigated rice crops can once again receive coverage which was suspended earlier this year.
Rice farmers who grow grain on unirrigated land may be eligible sometime before March to be covered by the National Insurance Institute (INS) which suspended coverage earlier this year. The state run company sought to protect itself in the face of losses of up to $4 million caused by a high claim rate in 2015 for those crops.
Having been affected in the last two years by losses in this category, the state insurance provider has suspended the issuance of policies for rain fed rice harvests, and plans to make changes to the insurance terms.
Authorities at the Ministry of Agriculture plan to ask the National Insurance Institute (INS) to reconsider the measure in the North Huetar and Atlantic Huetar regions, where rice farmers are complaining that they have already planted a significant amount of land. Losses incurred by the state-run insurer with this policy in 2015 exceeded $4 million.
Rules have been published in Costa Rica which must be followed by any private insurance company willing to sell mandatory vehicle insurance, which until now could only be issued by the state run insurance company.
MOPT regulation number 39.303 published in the Official Newspaper, La Gaceta, establishes maximum profit margins, the conditions to be met by insurance companies who sell Compulsory Vehicle Insurance (SOA by its initials in Spanish) and other considerations.
An accounting change in state insurance company explains the reduction of 3% in total industry premiums at the end of the first half of 2015 compared to the same period in 2014.
From a report by Fitch Ratings:
Sustained Growth: Since the opening of the Costa Rican insurance market to private competition in 2008, the market has experienced high and constant growth in premiums . However, at the end of the first semester of 2015 (1S15), the industry had reduced premiums by 3% compared to 1S14, due to a reclassification of accounts which affected the state company, the National Insurance Institute (INS; market share: 83%). Meanwhile, privately owned companies increased their premiums by 17% due to the innovation of new products and alternative distribution channels.
Through means of a public works trust the state insurer in Costa Rica will raise money in the local market to build two mega fire stations in San Jose.
The Superintendency of Securities has authorized the National Insurance Institute (INS) to create a securitization trust based on future flows to raise the necessary funds to build two mega fire stations for the fire department. The titles will be placed in the local market by the brokerage firm used by the INS.
The Superintendency of Insurance has asked for explanations from the National Insurance Institute over recent announcements made on grants and loans for road works and other government programs.
The superintendent argues that while the National Insurance Institute (INS) has the power to grant loans, the authorization to do so "is contingent upon the best practices of the insurance business."Nacion.com adds that "...The Law Regulating the Insurance Market dictates that 25% of the profits of the Institute are transferred each year to the State; the remaining 75% is to be used to capitalize the insurance business. "
With a loan of $21 million the state insurance company will design and carry out technical studies for a project to widen the road from San Jose to San Ramon.
At the request of the Ministry of Public Works and Transport, the National Insurance Institute will finance the pre-design work, design and the necessary technical studies to determine the cost and the conditions of renovating the route.
The reduction of 30% in premium income from compulsory work risk insurance accounted for most of the 8% decline in revenues from total premiums up to March.
In March general insurance and personal insurance maintained the upward trend that had been seen the previous months, with growth rates compared to the same month in 2014 of 6.1% and 8.3%, respectively.
A state-run insurance company project aims to create an insurance group for crops in order to encourage the use of these policies, the costs of which are high due to the high risk they present.
The Ministry of Agriculture and Livestock (MAG) and the National Insurance Institute (INS) are backing the concept of group insurance for agricultural producers so that they can have increased access to crop insurance. The initiative is expected to be ready before the end of the month. They are also seeking to create a fund with resources from both institutions for small producers.
The Superintendency of Insurance in Costa Rica is planning to start the process of opening up the market for compulsory automobile insurance in the first quarter.
In order to liberalize the market for compulsory automobile insurance, there first needs to be a review and approval of a decree which will focus on the regulation of the sale of insurance from the National Insurance Institute (INS) to private companies.