Insurance: Health Policies Regulated

In Panama, industry authorities have ordered insurers to refrain from applying increases to individual premiums that are not contemplated or authorized in health policies.

Friday, August 31, 2018

According to the order given by the Superintendency of Insurance and Reinsurance, insurers that made increases to policies that were unforeseen and not authorized by the regulator, in the last twelve months, will have to refund the excess to customers.

The Superintendent of Insurance and Reinsurance, José Joaquín Riesen, explained to that " ... they have seen annual increases in premiums of up to 100% for having had a person with a lot of claims one year. The policies for tariff increase must be included in the contract and in the technical notes submitted to the regulator for approval of the product. 'If in the contract that is sold to the consumer there is no talk of individual increases, what increase are they going to apply?'." 

Riesen added that " ... if a client is penalized individually for using their insurance in the usual way, this consumer will end up losing the ability to maintain his coverage. In practice, he explained, when it comes to a large mass of clients, some will have claims and others will not, with the burden being carried by them all."

For his part, the president of the Panamanian Association of Insurers (Apadea), Amílcar Córdoba, said that the " ... the guild is analyzing the content of the resolution, but the usual practice of the insurers grouped in Apadea is to submit collective rate increases to the regulator, as established by law."

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Panama: Hike in Insurance Premiums

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It has been announced that three insurers with the largest share in the market have requested authorization from the regulator to make adjustments of up to 12% on premiums for health insurance policies.

The Superintendent of Insurance and Reinsurance, José Joaquín Riesen, told that three companies asked to be able to increase premiums for health policies, arguing that the costs of medical services have increased by at least 10% in recent years, while premiums, deductibles and coinsurance have remained in the same price ranges.

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