The union of dealers attributed the slowdown in sales of compact cars to increased traffic accidents and the consequent increase in the cost of insurance.
The Nicaraguan Association of Motor Vehicle Distributors (Andiva) last year estimated that insurance premiums for small and compact cars increased by 15%, due to growth in traffic accidents in the country.Because of this situation, the union estimates that at the end of 2016"... possibly we will reach the same number of vehicles sold in 2015 or perhaps a growth of 1%."
The existence of 26 active brokerage companies confirms the confidence that this marketing channel continues to earn in the insurance market.
Since the opening up of the Costa Rican insurance market in 2010, momentum has gained in the activity of insurance brokers, going from one single company to 26 companies. Added to this are two entities with conditional authorization given by the Superintendent of Insurance (SUG): Innova Sociedad Corredora de Seguros and Akros Corredores de Seguros, while another two have recently filed applications, and are in the stage of reviewing regulatory documents, according Elfinancierocr.com.
Income from insurance premiums grew by 15% compared to the same month in 2015, reaching $924 million.
From the Monthly Bulletin by the Superintendent of Insurance:
Income from insurance premiums grew by 15% compared to September 2015, reaching ¢497 billion colones.Growth remains widespread by category and personal insurance is still the most dynamic category.The contribution of compulsory insurance, as explained in previous bulletins, responds to the increase in SOA in January 2016 due to accounting changes because RT premiums decreased by 20% year on year.
The industry´s share of the GDP also went down, going from 2.3% to 1.9% in 2015, in a context of lower prices and increased accidents.
From a Bulletin by the Superintendent of Insurance of Costa Rica (SUG):
Total premium revenues reached ¢ 564.1 billion ($ 1.052 billion) in 2015, going down by 9%. Only general insurance revenues grew in a form similar to production and in a context of lower prices, as measured by the CPI (Consumer Price Index).
The insurance industry had a turnover of $795 million in premiums, thanks to segments such as health, damages, and vehicles, accounting for 1.2% of Guatemala's GDP last year.
According to the Guatemalan Association of the Insurance Industry (Agis), growth in areas such as health and hospitalization (13.3%), damages (6.9%) and automotive (6.8%) vehicles favored a general growth in premiums in 2015 of 6.3% compared to the amount accumulated in 2014, with total premium income being in the order of Q6.157 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.
In August 2015 a growth rate of 8% in claims and 4% in the value of premiums was recorded.
Although growth in claims has moderated compared to previous months, the Superintendency of Insurance and Reinsurance believes that the gap between the growth of premiums and claims is still wide and capital required of insurance companies and premium costs need to be raised.
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.
Technical policies reported growth of 15.3%, followed by life insurance which achieved an increase of 14.3%, fire insurance and allied lines with 13.3% and health insurance with 10.8%.
From a statement issued by the Panamanian Association of Insurers (Apadea):
The Panamanian insurance market closed last year with growth of 8.1%, with a lot of challenges to face in 2015 such as promoting 100% penetration for policies, sufficient development in rates and more personalized underwriting.
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.
Insurers say the highly competitive market is generating large variations in the prices of premiums, particularly in auto policies.
Growth in claims, primarily in motor insurance, which increased 14% in the first half of the year compared to the same period in 2013, is generating increases in prices of premiums.
Claims are growing at a faster rate than the premiums paid by customers, which rose by 9.94%, after going from $117,696,000 in the first seven months of 2013 to $129,395,000 between January and July this year. According to Berguido, these figures indicate that, contrary to what was expected, there are not yet "significant price increases" in premiums and they are not widespread.