In Panama, industry authorities have ordered insurers to refrain from applying increases to individual premiums that are not contemplated or authorized in health policies.
According to the order given by the Superintendency of Insurance and Reinsurance, insurers that made increases to policies that were unforeseen and not authorized by the regulator, in the last twelve months, will have to refund the excess to customers.
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.
In the first five months of the year the volume of premiums was $545 million, nearly $50 million more than in the same period in 2013.
Automobiles, with premiums of $94 million and Health, with premiums of $91.8 million, are the sectors that grew the most compared to the previous period, with increases of 9.83% and 17%, respectively.
Carlos Berguido, executive director of Asociación Panameña de Aseguradores, said in Prensa.com that "...
Representatives from the government and employers reached an agreement to reform the rule which requires a bond deposit of between $3000 and $75 000 on stores that sell alcoholic beverages.
Prensa.com reports that "members of the National Association of Bars, Pubs and Businesses engaged in the sale of liquor, and representatives from the Ministry of Commerce and Industry (Mici) agreed to eliminate the performance bond established in Act No.
The figure is an estimate of the amount of damage caused by the recent floods, which need to be recovered by homeowners who took out insurance against natural disasters.
Panamaamerica.com reports that the executive director of the Panamanian Association of Insurers (Apadea), Carlos Berguido, said: "There still isn’t an exact number that indicates exactly how many families and homes have been affected by the recent floods, and whose concerns will be mitigated because their assets were covered - against natural disasters-by an insurance policy. "
The approval of a Law of April 12, 2012, allows the sale of insurance policies through what are called "alternative marketing channels."
The proximity to the final consumer will contribute to the generation of new products, said Carlos Berguido, executive director of the Panamanian Association of Insurers, "... it will generate" a much larger range of products. Any customer will be able to have a number of amazing products. "
Panamanian insurers managed to sell $1.1 billion worth in 2011, beating Costa Rica ($794 million) and Guatemala ($620 million).
Panamanian insurers managed to sell $1.1 billion worth of insurance in 2011, according to the Superintendency for Insurance and Reinsurance in Panama. With the number of premiums written by the industry beating Costa Rica ($794 million) and Guatemala ($620 million).
Panamanian insurers announced price increases of up to 100% for health insurance.
These increases are driven by high accident rates and increased medical costs.
"Mauricio de la Guardia, president of the Panamanian Insurers Association, explained that companies recorded an increase of more than 70% in accident rates, so they must rise prices to cover increased costs", reported Prensa.com.
Surety bonds and collective and life insurance will be taxed 5%.
These new impositions are part of the fiscal adjustment law, and would increase the State's revenue in $11 million.
"Salvador Morales, executive vice president of Suramericana Insurance, argued that these changes are a 'hard blow' for the owners of life insurance, which plays a social protection role for families", reports Prensa.com.
The Panamanian Association of Insurance Companies submitted a proposal for modifying the regulating law.
The most relevant topics in the proposal include accounting compliance with the International Financial Reporting Standards (IFRS), creation of a Consumer Protection agency for insurance clients, and control and prevention of money laundering.
"Government and Insurance companies are working in reforming Law 59, from July 29, 1996.
They offer specials such as discounts and vouchers for cosmetic surgery to women who acquire vehicle insurance.
According to the Panamanian Superintendent of Insurance, women are attractive as customers because they have a lower risk of accidents.
That is why insurance companies offer discounts and coupons exclusively for women such as a 50% deductible discount, vouchers for cosmetic surgery or discounts of up to 5% if you are an executive older than 25.
Sales are slower and getting credit is not as easy, but the effects of the crisis are, until now, softer in Panama than in other countries.
Although the situation is not the boom that it was two years ago, when Panama City was growing rapidly toward the sky, the figures are still in positive terrain. The toughening of the conditions imposed by banks for granting new loans is noticeable and, speaking of sales, the recurring word is "slow," and this has led to strategy variations by real estate operators.
Insurance claims rose by 62.22 percent in the first five months of this year in Panama compared with the same period of 2007.
Insurers face difficulties that are likely to be reflected in lower profits. The increase in claims is being blamed on an increase in crime, poor fire prevention in the Colón Free Zone and an increase in the cost of medical services.
Panama-based insurance companies wrote US$236 million in premiums in the first quarter, a 31 percent increase on the same period of last year.
Mauricio De la Guardia, president of the Panamanian Insurance Association, said the rate of growth was likely to be maintained in the second quarter as well.