84-year insurance monopoly ends in Costa Rica

Authorities of Costa Rica's state insurance company say they're ready to face competition and to operate throughout the region.

Tuesday, July 22, 2008

Several companies are expected to take advantage of the opening of the insurance market.
The passage of law amendment opening the insurance industry is part of the process of preparing to join the Central American Free Trade Agreement with the United States.
The measure encountered some opposition in Congress, but there was a sweetener: the amendment also paves the way for the National Insurance Institute to operate abroad, in effect competing in other markets throughout the region.
It will also simplify the process of signing contracts and purchasing.

More on this topic

Costa Rica: INS sets up four insurance companies

October 2008

The National Insurance Institute (INS) created four new companies to face competition in the insurance market.

The firms are called: INS International, INS Services, INS Life, INS Business. With these four corporations and a range of new products, the state insurer is seeking to gain an advantage over its competitors.

Change comes to Costa Rica's national insurance company

July 2008

Costa Rica's passage of the Law to Regulate the Insurance Market has brought the National Insurance Company to a new stage, under which it gives up monopoly status at home but is allowed to enter foreign markets.

As a first stage of the internationalization of operations, the company is proposing to expand into Nicaragua over the next six months, and in 2009 it plans to enter the Panamanian marketplace.

Congress votes to remove state insurance monopoly

July 2008

Costa Rica's Congress approved a bill that will remove the state's monopoly of the insurance market.

As stipulated by the Constitutional Court, the bill was passed by a simple majority on a second reading. The bill also includes measures to strengthen the state insurance sector.

Costa Rica's insurance market opening up

June 2008

A bill to change the regulatory environment of the insurance industry in Costa Rica appears to have the 38 votes needed to pass second reading.

There appears to be no serious opposition to the Regulatory Law of the Insurance Market, and it looks as though it will have smooth sailing in Congress.