Market Opening Led to Lower Insurance Rates

After two years of full competition in Costa Rica, insurers are keeping in place aggressive pricing tactics and incentives in the battle for customers.

Tuesday, July 2, 2013

In an interview conducted by Sergio Morales for Elfinancierocr.com, William Constenla, president of the National Insurance Institute (INS by its initials in Spanish), explained that the company has been forced to confront the price war by offering more services or range of products, offering, for example, zero deductible car insurance, which means that the insured party does not have to pay anything in case of an accident.

According to Constenla, the insurance price war is mainly in the lines of cars and earthquake and fire insurance.

To the question, what is causing there to be more premium income, but a lower rate of profit than last year?, Constenla responded that there are more insurance companies struggling to keep customers, this fight involves tariff reductions which in some cases have been very significant.

"The drop in prices has been maintained, the fight for the customers is still in force, I do not know how long it will last because if you look at the companies income statements, there are only three that have positive numbers."



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New Association of Insurance Companies in Costa Rica

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