The Panamanian insurer will offer offer 25 products in Costa Rica, available in both dollars and colones, the local currency.
In a press conference, the insurance company unveiled half of its product portfolio, already available to the public. These products will be sold via brokers and agents.
"ASSA has invested $9 million and expects to create around 31 new jobs in its first year of operations," reports Elfinanciercr.com.
Insurers BUPA and MD International have expressed their intention of entering the Guatemalan market, just weeks after congress passed the Bill for Insurance Activity.
BUPA is based in England while MD International is from the United States. Both reportedly asked the Banking Superintendence for information on the permits and procedures required to operate in the country.
The insurer will launch a strong campaign to enter the market, looking to create demand for its services.
Eugenio Magdalena, executive vice president of International Markets at Pan-American, remarked that the company will provide individual insurance, focusing on life, health and accident policies.
“Alfredo Ramirez, local manager of the company, explained that their first product will be a collective life and health insurance and that it will be available on August”, reported Elfinancierocr.com.
The National Assembly has approved 90 articles of the future law that will facilitate the opening up of the Nicaraguan insurance market.
This law is a requirement for DR-CAFTA and was supposed to have been approved by April, four years after the trade agreement came into force.
The president of the Economic Commission of the Nicaraguan National Assembly, Wálmaro Gutiérrez, told Elnuevodiario.com.ni that, “we have an overdue obligation and responsibility to open up the insurance market so that foreign insurance providers can begin to offer their services”.
The policy offered by the bank requires no medical exams and is easy to obtain.
Another characteristic of this kind of policy is that there is no need to renew it every year and it covers natural and accidental death, total or permanent disability due to accidental causes and funeral expenses.
“People can choose whether to purchase the insurance in colones or dollars up to a maximum of ¢50 million ($94,000).
Pan American Life Insurance was finally authorized by the Insurance Superintendence to operate in the country.
The company will sell individual life and health insurance, as well as group life, accident and health insurance. One of its core products is a policy for large medical costs, which will allow individuals to get expensive health care both in Costa Rica and abroad.
The Insurance Superintendence authorized new products by ASSA and Alico into the market.
Alico will sell Collective Life Insurance while ASSA is offering policies in dollars or colones, to protect movables or real estate against various risks.
As of now, Costa Rica private insurers are offering four different products to the population.
“The National Insurance Institute offers 142 products, while Magisterio 13”, reported Nacion.com.
The alliance with Grupo Sancor aims to develop products for the agricultural sector and for dealing with job risks.
Current legislation states that the market will be opened for insurance related to job hazards and risks on January 2011. The National Insurance Institute (INS) believes that the alliance with Grupo Sancor will be very advantageous, as they have experience in this field.
The Finance ministry suggested the State to acquire insurance to protect public infrastructure.
Minister Juan Alberto Fuentes Knight argued that the country is vulnerable to climate change, and remarked that the State should also generate reserve funds and negotiate precautionary loans.
Newspaper Sigloxxi.com also published comments by Raul Aguilar, president of the Guatemalan Insurers Association (AGIS): “The state owns assets such as bridges, the National Theatre, buildings, etc. They should insure them, as other countries do”.
High volatility in the value of the Costa Rican colon versus the U.S. dollar has fueled demand for financial derivates to hedge from such risks.
These products have been available in Costa Rica since 2007, but they have only recently been requested by investors, as the exchange rate has been extremely volatile as of lately.
Three brokerage houses, Aldesa, INS and Mercado de Valores, now join BCT, BCR and Grupo Acobo in offering these products.
Backed by the National Insurance Institute (INS), Bank BCR (“Banco de Costa Rica”) will offer insurance policies for serious illnesses.
These policies cover individuals if they are diagnosed with a serious disease such as cancer, cerebrovascular accident, heart attacks of renal failure.
Elfinancierocr.com detailed that the policy has more benefits: “if the client needs to be hospitalized because of the disease, INS will pay an additional $100 per day during no more than 90 days”.
The company signed insurance brokerage agreements with ASSA and Mundial, becoming the first broker who has signed deals with the country’s five authorized insurers.
“ASSA Compañía de Seguros S.A.”, was authorized to operate in Costa Rica on April 13, and Mundial received its authorization back on February 19.
With these agreements, “BCR Corredora de Seguros” will be able to sell insurance from various companies: National Insurance Institute (INS), Magisterio, Alico, ASSA and Mundial.