Fine Given for Anticompetitive Insurance Practices

The Costa Rican State insurance company will have to pay $174,000 as a penalty for "improving any offer made by their competition to their customers."

Thursday, September 25, 2014

The Antitrust Commission imposed a fine of 94 million colones ($174,000) on Instituto Nacional de Seguros (INS) in a case reported by the Superintendent of Insurance in 2011, a year after the opening up of the market. reports that "... this case was related to the discounts offered on auto and fire insurance policies offered by the state run company."

In justifying the fine, Coprocom said relative monopolistic practices are harmful to the process of free competition. It also described the acts committed by the National Insurance Institute (INS) a serious infringement because it considered this behavior "excessive" because of its dominant position. "
On this point the Sugese noted that "... 'The loyalty discounts given by an company which held a dominant position are considered abusive, producing the effect of impeding market access of competitors.'"

More on this topic

El Salvador: Insurers Fined for Anticompetitive Agreements

June 2015

A ruling was given that there was manipulation and suppression of offers made for the purpose of market-sharing in the AFP’s tender for hiring of Disability Insurance.

From a statement issued by the Superintendency of Competition (SC):

The Board (CD) of the Superintendency of Competition (SC) has fined the insurance companies Asesuisa Vida, SA, Personal Insurance; Sisa Vida SA Personal Insurance; and AIG Life SA Personal Insurance for violating Art. 25 of the Competition Act (LC), having made an anticompetitive agreement on public procurement procedures called by the Pension Fund Administrators (AFP) Crecer y Confía, for hiring Disability Insurance (SIS) during the period April 2008 to April 2012.

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The penalty imposed by the Commission to Promote Competition in Costa Rica has been upheld after the First Chamber of the Supreme Court declared the last appeal filed by the company irrelevant.

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Limitations of Insurance Privatisation in Costa Rica

May 2012

The total exclusivity requirement imposed by the National Institute of Insurance on agencies who sell their insurance, is an anticompetitive mechanism that is making it difficult for the market to open up.

In his blog " Mercado Seguro " in, attorney and insurance specialist Said Breedy analyzes the criteria issued by the Commission to Promote Competition (COPROCOM) on the exclusivity clause in agency contracts with the National Institute Insurance (INS) in place since 2007.

Costa Rica: Reforms to Anti-Monopoly Law

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The recent fine imposed on Mabe has revived controversy over the nature of the regulations.

Two bills relating to monopolies, under analysis in the Legislative Assembly, might be reactivated earlier than expected, after the Commission for the Promotion of Competition (COPROCOM) decided to fine the company Mabe for unlawful concentration in the market.