Costa Rica: Market Leader Avoids Competition

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

Monday, May 30, 2011

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.

This is the opinion of insurance expert Alejandro Ferreiro, former Superintendent of Insurance and Securities in Chile, who provided this and other comments in an interview with Costa Rican media.

The expert said in the interview with El Financiero, that "when moving to a competitive market there is a natural temptation for the monopoly to prevent competition through -sometimes illegal- practices, which the authorities need to be able to identify and punish promptly and strictly. "



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84-year insurance monopoly ends in Costa Rica

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

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