Insurance: Business Against Epidemics

Panamanian businessmen consider unviable the bill that intends to force insurance companies to cover medical expenses related to the coronavirus.

Wednesday, March 11, 2020

The bill, which was presented by Representative Zulay Rodriguez, seeks to ensure that insurance company clients are attended to in case they are infected with covid-19, however, policies do not usually provide coverage when the disease is declared as an epidemic or pandemic.

See "Instability, Confusion and Economic Deceleration"

Arturo Saenz, president of the Panamanian Association of Insurers (Apadea), told that "... The exclusion of the epidemic is international. Imposing a law like that would be quite traumatic, because it would leave us without reinsurance coverage. For the purposes of our business, we don't see it as viable."

Amilcar Cordoba, former president of Apadea, also criticized the bill, saying that such proposals "... are against the free market and freedom of contract."

Insurers expect that the impact on health insurance contracts of the coronavirus crisis will not be significant, nor do they foresee great variations in the payment of claims caused by the expansion of infections.

More on this topic

Microinsurance Growing in Panama

May 2014

Two years after the amendment to the Law of the sector, the insurance market covering risks for short periods at low costs has been consolidated.

Banks and supermarkets are some of the outlets that insurance companies use to market a product that has established itself as a commercial operation with a low risk for insurers.

Insurance Act Delayed in the Panamanian Assembly

November 2011

The passing of the bill – which has already been agreed upon - would allow the development of the micro-insurance market and new distribution channels.

The passing of the bill – which has already been agreed upon - would allow the development of the micro-insurance market and new distribution channels.

Panama Promotes Local Financial Market

July 2011

The Panamanian government is proposing a series of amendments to the legislation in order to develop the market.

In order to foster the development of local markets, Panamanian authorities have decided to restrict the purchase and sale of Panamanian bonds by pension funds and insurers to the local market.

Insurers Aim to Low Income Groups

October 2010

The insurance companies are looking to Guatemala´s lower income sector, where they see great growth potential.

The offer would consist in specific micro-insurances like unemployment insurance, funeral services, home accidents and family wires, among others.

Experts believe there is high potential because of the large number of people who can be insured at reduced coverage premiums.

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