Demonopolization of Mandatory Auto Insurance

The Superintendency of Insurance in Costa Rica is planning to start the process of opening up the market for compulsory automobile insurance in the first quarter.

Thursday, January 8, 2015

In order to liberalize the market for compulsory automobile insurance, there first needs to be a review and approval of a decree which will focus on the regulation of the sale of insurance from the National Insurance Institute (INS) to private companies. At present, only the INS sells compulsory automotive insurance, a fee which is included in the payment of the road tax.

The INS's Chief Executive, Sergio Alfaro, told Ameliarueda.com that "... It is time that the INS and private companies sold car insurance, so that customers can have more choices ... In addition what is also needed when this type of insurance is opened up to the private market, is for not only policies for cars to be sold but for motorcycles as well. "

For its part, the general superintendent of insurance, Tomás Soley, added "... One of the points that needs to be discussed and regulated in the decree is insurance coverage for motorcyclists. ""... The Superintendency of Insurance had valued the decree imposes a minimum coverage of $5,500 and increase progressively each year, as the current amount is insufficient to pay the medical expenses of injured people to the Costa Rican Social Security Department. "

More on this topic

Private Insurance Companies have 10% Market Share

December 2012

In Costa Rica, 4 years after the opening up of the sector, the 10 private insurance companies have a 9.8% market share.

The undisputed leader remains the Instituto Nacional de Seguros (INS), with a 90.2% market share and among the private companies the strongest are Mapfre and Assa with a 9.6% share between them.

Solidarity Insurance Market in Costa Rica is Open

December 2012

The Constitutional Chamber of the Supreme Court has rejected an appeal that opposed the opening of the market, which includes Occupational Risks and Compulsory Auto Insurance.

This constitutional ruling completes the insurance market opening which started four years ago. The end of monopolization of this type of insurance was scheduled for January 1, 2011, but was stopped because of a constitutional motion filed on December 21, 2010.

Consumer Protection Regulations for Insurance

November 2012

The Central Bank of Costa Rica is putting to public consultation the Regulation for Defence and Consumer Protection Insurance.

The regulation will be under consultation until 27 December.
Nacion.com reports that "According to this regulation, all natural or legal persons who are properly identified can make complaints or appeals with insurance firms provided these requests relate to their interests or legally recognized rights."

Incomplete Opening of the Insurance Market

November 2012

In Costa Rica compulsory motor insurance remains the monopoly of the state run insurance company, the INS.

A constitutional action filed against the opening up of the market for the Workplace Insurance, arguing that "this social insurance is designed to provide universal coverage at no cost to all people working in the country, against any accident or illness resulting from their activity ", has also detained the liberalization of the market for compulsory insurance for motor vehicles.

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