From January to June 2020 in Nicaragua, the amount paid by insurers for life insurance increased by 54% compared to the same period in 2019, a rise that could be explained by the health crisis generated by the spread of covid-19.
Although the Nicaraguan government had only 116 deaths from covid-19 as of July 28, the numbers of insurance companies competing in the local market reflect another reality.
Last year in Nicaragua, insurance sales totaled $199 million, 4% less than in 2018, a drop that can be explained in part by the drop in life, health and accident policies.
Data from the Superintendence of Banks and Other Financial Institutions (Siboif) detail that between 2018 and 2019 premium sales fell by $9 million, from $208 million to $199 million.
During the first quarter of the year in Nicaragua, premium income was down 6% from the same period in 2018, while claims payments increased 14%.
Figures from the Superintendence of Banks and Other Financial Institutions (Siboif) indicate that between January and March 2018, and the same period in 2019, premiums in the country fell from $55 million to $53 million.
In the first five months of the year premiums totaled $77.9 million, 4% more than in the same period in 2014.
Despite being the smallest of the region's insurance markets, the rate at which premiums sold by the five insurance companies operating in the country have grown allows them to estimate that at the end of 2015 they will reach $200 million in revenue, a figure higher than the $172 million in 2014.
Auto policies are the fastest growing category, with an increase of 14% so far this year compared to 2013.
Lack of a culture of prevention is preventing the emerging Nicaraguan insurance market from achieving high growth rates in most policies. Car policies are the most sought after, but those for life, property and health are growing slowly.
"... In 2013, the insurance industry paid $40 million in personal insurance, which included life insurance, accident and health insurance and pension income; also in property insurance including car insurance, fire and other policies, $105.2 million was paid."
Freight companies in Nicaragua say with the introduction of new rates the cost of insuring a truck for damage by third parties has increased from $85 to $295.
Between $45 million and $50 million more is the estimated amount that will have to be paid by freight business to ensure the trucks to comply with amendments to the Law for the Traffic Circulation Plan and Traffic Violations.
Between December 2012 and December 2013 revenue from premiums went from $138 million to $156 million.
The pace of growth in the insurance sector in Nicaragua increased during the first quarter of 2014, registering premiums of $43 million, an increase of 21% compared to the same period in 2013.
Laprensa.com.ni reports that "... of the total premiums sold during 2013, the property insurance segment accounted for 71% of total sales, receiving $111.15 million, reflecting a growth of 10 5% compared to the $100.56 million sold in 2012. "
Products in the category of life, accident and health lead the 6% increase in premiums seen in the first three months of the year compared with the same period in 2013.
Total premiums paid in the first quarter amounted to $42 million, of which 37.4% were for first party car insurance, 21.0 % for fire insurance and associated lines, 19.09 % for life insurance (individual and collective) and the remaining 6.01 % for health insurance.
Backed by the Central American and Caribbean Network of Microfinancers six companies have begun offering microinsurance to families and small businesses.
Ivan Gutierrez, executive director of the Central American and Caribbean Microfinancers Network (Redcamif), said that "from July this year six microfinance institutions will start to offer life and accident insurance, health insurance and temporary disability income."
Private insurers are beginning to outperform the state insurance company and have so far captured a 40% market share.
The ranking of the premiums made by the Superintendency of Banks and Other Financial Institutions (Siboif) reveals that in the case of Seguros América S.A.,in the first quarter of 2013, they led the market with 29.3% of the sector. The company following them is Instituto Nicaragüense de Seguros y Reaseguros (Iniser) with 26.4%, ASSA Compañía de Seguros SA with 18.9%, Seguros Lafise with 17,5% and Mapfre Nicaragua with 7,8%.
A company whose assets are not insured is like a tight-rope walker without a net: any mistake could mean death.
There are three kinds of corporate insurance. While not all companies may benefit from all kinds of protection, they are likely to need at least one in order to cover all the risks to which they are exposed.
Insurance policies for companies include everything from coverage against workers' compensation claims to protection against executive kidnappings. With so many options available, businesses need to analyze their needs carefully and balance the cost of premiums relative to the cost of a given risk.