The process of forced liquidation of the Venezuelan company Seguros Constitución has now ended, with the assignment of the life insurance portfolio to Acerta Seguros, for an insured sum of $43 million.
The Insurance Settlement Board, appointed in late October 2015 to carry out the compulsory liquidation of the insurer, reported that in addition to the assignment of the life insurance portfolio, five real estate properties were sold for a total of $1.3 million.
In the first half of the year, net premiums totaled $306 million, and the insurance guild plans to close the year with a total growth of 5% compared to 2016.
Figures from the Salvadoran Association of Companies (ASES) show that 2016 closed with a total of $621 million in registered net premiums, and for this year the projection is to increase them by approximately $30 million.
For the first time since the opening of the insurance market, the National Insurance Institute has lost its dominance in the health insurance segment, which is now led by Pan American Life Insurance.
The insurance company Pan American Life Insurance took 40% of the revenues generated by sales of medical insurance policies at the end of June this year.According to data from the Insurance Superintendency, Instituto Nacional de Seguros (INS)"... accounted for 38% of the business (¢16,935 million), followed by Aseguradora del Istmo (Adisa) with 6%."
Life, health, and accident policies accounted for most of the 12% growth recorded in premiums during the first quarter of the year compared to the same period in 2016.
Total premiums recorded in the first quarter of the year, according to figures provided by Victor Urcuyo, head of the Superintendency of Banks and Other Financial Institutions, amounted to $57 million, almost 13% more than in the same period last year.
Granting insurance for a period of 15 days and limiting the scope to medical care are some of the changes that are being prepared to re-offer free medical insurance for tourists.
Previously the insurance covered up to 30 days for tourists entering through the international airport of Tocumen, but now the new proposal that is under study by the Tourism Authority would reduce the term to two weeks, which is the length of time that most tourists stay in the country.The benefit was implemented by the Martinelli administration in 2011 andcanceled three years later, due to its high cost.
Fitch projects a growth close to 15% in premiums this year, in a context of economic stability and consolidation of strategies by insurers.
From a report by Fitch Ratings:
Strong growth in premiums:the Costa Rican insurance industry grew by 16% in terms of premiums written up to the close of 2016, the result of a reclassification in the financial figures of the state - owned company and the largestmarket participant, Instituto Nacional de Seguros (INS), which was influential in the growth of -9% in 2015. Excluding this reclassification, the sector's growth reached 9% at the end of 2016, which is still a favorable level, according to Fitch Ratings.Meanwhile, private equity insurers recorded premium growth of 35%, thanks to innovation in products and marketing channels.
The Tourism Authority is considering redeploying the benefit of free insurance for medical expenses for visitors, but adjusting the scope and term of the coverage.
Authorities are assessing the changes that would be needed in order to implement the free health insurance program for tourists once again, seeing as it was such a valuable promotional tool.The benefit was implemented by the Martinelli administration in 2011 andcanceled three years later, due to its high cost.
In January $136 million worth of insurance premiums were sold, below the $138 million sold in the same month of 2016.
The decrease compared to January last year is mainly explained by a reduction in premium segments such as maritime, aviation, technical, various risks and bonds.
Laestrella.com.pa reports that "...In the first month of this year, insurance sales associated with maritime activities decreased by 65.1% and those related to the airline industry shrank by 9.7%.Similarly there were contractions in sales in the technical category (-26.1%), insurance of various risks (-29.3%) and bonds (-4.6%)."
Pharmaceutical companies, hospitals, medical tourism companies, laboratories, pharmacies and research centers are part of the new Costa Rican health chamber.
The group of health sector companies announced that they"... intend to work with the state to assist in generating solutions to the challenges of the health system."
Voluntary insurance made up the main component of growth compared to 2015, with a consequent reduction in the share of compulsory insurance.
From a monthly report by the Superintendent of Insurance:
In 2016, revenues from insurance premiums grew by ¢90.7 billion (16%) compared to 2015, closing the year at ¢655 billion.Growth was widespread by category and in all cases, higher than the main macroeconomic indicators.
According to Fitch Ratings growth in the insurance sector in Central America in 2017 will be driven by the markets of Costa Rica and Nicaragua.
From the report "Outlook 2017: Insurance in Central America" by Fitch Ratings:
Rating Outlook Stable:Fitch Ratings´outlook for insurance ratings in Central America is stable. The agency believes that there is a limited probability of rating adjustments in the next 12 to 18 months, which could lead to significant changes in the risk profile or the weighted support in some cases.
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 Ministry of Government in Panama is putting out to tender the supply of group life and health insurance for its staff.
Panama Government Purchase 2016-0-04-0-08-LV-008 831:
"Supply of group life insurance and group health insurance for Public Servants of the Ministry of Government, exposed to risks, and Collective International Health Insurance for Public Servants of the Ministry of Government, traveling abroad on official or training missions, according to the tender documents."
Panama stands out as the country with the highest penetration rate in the region, and at the other end is Honduras, with the lowest rate, and below the average in Latin America.
From a report by MAPFRE: "Trends of growth in insurance markets in Latin America":
Guatemala
The insurance market penetration rate in Guatemala stood at 1.23% in 2015, showing a stable trend over the analyzed period,graduallymoving awayfrom the average for the region. The deepening index, meanwhile, stood at 19.7%, with a tendency toward gradual improvement, but still below the average for the Latin American markets.