Industry participants predict a year-end in the red because of a sharp increase in claims for losses.
Prensa.com reports: "Although total premiums up to October 2013 was $976 million, with growth in the sector of 9.6% compared to the same period last year, the directors of the Panamanian Association of Insurers (Apadea) predict that at the end of the year there will be a loss. "
"For the sector's improvement, it will be key to adjust fees for products with high accident rates, as well as more careful subscription"
By the end of June 2009, net premiums had grown at an inflation adjusted rate of 9.8%, although lower growth should be expected for the end of the year, due to worse economic performance. Growth in individual insurance was remarkable (14% average), specially in collective life and accident and health, while general damage insurance saw a 7% increase.
Fitch Rating's Special Report: "Insurance Industry Costa Rica: End of the State's Monopoly"
Costa Rica's insurance industry had been dominated by a state-owned monopoly until the new Insurance Law of 2008; up to December 2008 it is the largest and fastest growing market in Central America (excluding Panama). Total premiums by the end of 2008 summed $611.5 million, with the region's largest year-on-year growth (19.4%).
Fitch Ratings highlighted a 26.5% growth in net results by the Salvadoran Insurance Sector as compared to 2007.
•Greater Earnings. The Salvadoran insurance industry recorded a 26.5% growth in its net results for 2007, resulting primarily from an increase in subscribed premiums coupled with a lower accident rate.
• Overestimation of production. The portfolio of net premiums totaled $439.2 million, an increase of 11.4% over 2007.
There was an improvement in accident rates and operating performance in the Nicaraguan insurance sector in 2008, as reported by Fitch in a special report.
Thanks to the growth in insurance premiums in the period and progress in costs and accident rates, the sector was able to overcome the operating loss that occurred last year (especially the state insurance company), registering a combined index of 96.3% in 2008 compared to 103.7% in 2007.
Fitch Central America Special Report: "Salvadoran Insurance Sector: Bi-annual Performance and Short Term Outlook."
The main highlight in the Salvadoran insurance sector is that 80% of the premiums are in the hands of international conglomerates, which creates stability and strength and has resulted in improvements in the solvency, liquidity and management ratios.