State insurance monopoly ended in Costa Rica

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.

Friday, April 25, 2008

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.
Second reading of the bill is on the order paper for Tuesday.

More on this topic

Costa Rica: State Insurance Company Wants to Internationalize

March 2013

The National Insurance Institute will resume this year its plan to expand its operations to the countries of the region, investing $300 million in the process.

The National Insurance Institute (INS by its initials in Spanish) intends to be the majority shareholder or acquire 100% of a company with regional presence, a project suspended in 2009 when the company faced opposition from institutions such as the Comptroller General of the Republic, the Pensions Superintendency and the Attorney General's Office.

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.

Changes in the Costa Rican insurance industry

May 2008

Legislation to end an 84-year insurance monopoly in Costa Rica recently received first reading in the Legislative Assembly. The bill includes several important changes for the insurance industry.

It would allow insurance operations to be carried out by approved companies, including cross-border insurance for several cases regulated by the legislation.

Salvadorian Banks: Fitch Annual Review & Outlook

April 2008

El Salvador's banking system exhibited moderate growth in 2007, primarily aided by a continued increase in consumer loans and mortgages, as well as faster commercial loan growth, according to a Fitch special report published today, titled 'Salvadoran Banks: Annual Review and Outlook'.

In 2007, El Salvadoran banks' total assets expanded by 11.4% in nominal terms (5.8% in real terms), while overall net profits declined by 12.4%, due to higher provisions. Additionally, non-performing loans increased to 2.1% of total loans as of December 2007 (versus 1.9% in 2006), despite significant non-performing loans throughout 2007. However, loan loss reserves appear to be adequate and relatively stable in terms of both non-performing loans (120%) and total loans (2.5%).