Accusations of Anti-Competitive Practices in Insurance Industry

The National Insurance Institute of Costa Rica is under investigation for price reductions that could constitute a violation of the Law on Promotion of Competition.

Monday, December 5, 2011

The open procedure by the Commission to Promote Competition (COPROCOM) is the only one that has been presented since the opening of the insurance market in 2008.

"If it is shown that there have been monopolistic practices, the INS could be fined up to 410 times the minimum wage.

Where the commission considers that there has been particularly serious conduct, it may impose a penalty equal to 10% of sales or up to 10% of assets. Of these two options, whichever is higher.

According to the Commission, the INS has filed an appeal for reconsideration against the filing of this regular procedure", reported

More on this topic

Costa Rica: Market Leader Avoids Competition

May 2011

The largest provider of insurance in Costa Rica might have difficulty getting used to competing.

In a market where there is a big player who for years has dominated the service, in this case, the Instituto Costarricense de Seguros, adapting to the new rules of a competitive market gets complicated.

84-year insurance monopoly ends in Costa Rica

July 2008

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

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.

Costa Rica's state insurer to compete in the region

June 2008

Costa Rica's state insurer, Instituto de Seguros de Costa Rica (INS), could sell insurance in other countries by creating a corporation.

The Constitutional Chamber has cleared the way legally for INS to sell its services abroad.
This has reawakened plans for the insurer to expand into Nicaragua and Panama, which it proposed as early as last Decmber.

State insurance monopoly ended in Costa Rica

April 2008

With 29 votes to 14 in favor, the legislative assemply yesterday approved the first reading of the bill through which the state monopoly on the insurance market would be ended. The bill establishes rules that will enable private companies to enter the market.

The new law would grant administrative facilities and would forgive some financial costs to the National Insurance Institute in order to maintain its competitivity in the face of probable participation by national and foreign companies.