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. "

More on this topic

Costa Rica's New Insurance Market

September 2009

Local company "Seguros del Magisterio", and two panamanian corporations, "Mundial" and "Assa", are the first new players in the market.

Costa Rica's insurance market is the largest in Central America. This can be analyzed by comparing the assets of the state-owned National Insurance Institute of Costa Rica, with the other insurance companies of the region.

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.

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.

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.