The government of Costa Rica is promoting a legal reform that would transfer the cost of financial supervision to banking institutions, insurance companies and pension operators.
The legal amendment was included in the Bill for the Efficient Management of Public Finances already sent to the Legislature.
So far, "the Central Bank is funding 80% of the operation of the Superintendent of Financial Institutions (Sugef), the Superintendent of Securities (Sugeval), the Superintendent of Pensions (Supen) and the Superintendent of Insurance (SUGESE)," reported Nacion.com.
Insurer Pan American Life Insurance Group (Palig), submitted a request to operate in the country.
Its President, José Suquet, announced the company's interest in commercializing individual and collective life insurance, as well as accident and health insurance, while staying out of vehicle and disaster insurance.
The executive told Nacion.com that "...they expect to commence selling insurance in the country in the first quarter of 2010...
The Panamanian insurer, owned by regional conglomerate Grupo Mundial, would operate in Costa Rica in 4 months.
As the insurance market opens in Costa Rica, Sociedad Aseguradora Mundial S.A. is the first foreign capital company to be authorized by the Pensions Superintendence (Supen, spanish acronym) to compete with the state's "Instituto Nacional de Seguros" and "Sociedad de Seguros del Magisterio" the first Costa Rican competitor.
These will be the first guidelines that will be used to regulate the insurance market that up to now has been monopolized by the National Insurance Institute (INS).
The Connassif (the Financial Regulatory Body in Costa Rica) approved the regulations for insurance companies and will hold public consultations for ten days. Javier Cascante, Pension Superintendent, explained that the regulations establish the requirements for insurance companies, as mandated by the Insurance Superintendence, so that they can operate in the country. This includes legal, formal, accounting, administrative, and operational requirements.