More Insurance Brokers in Costa Rica

The number of insurance intermediary companies grew by 75% from 8 to 14 in the last twelve months.

Monday, May 7, 2012

The number of insurance brokers in Costa Rica is now 14, a significant increase, up 75% from March 2011 to March 2012. While the number of intermediaries has increased, the number of insurance companies in decreased to nine during the same period, a reduction of 11.4%.

To date, three companies have become agency insurance brokers: AF Seguros, Comercial de Seguros and Asprose.

Thanks to the operations of 10 private insurance companies, which compete with the National Insurance Institute, the number of brokers and agents has increased. In March the former numbered 101 and the later 1431.

The analyst Juan Ignacio Gamboa believes that this type of intermediary (brokers) may bring greater dynamism to the market. "Brokers may be one of the major market participants, because they can analyze the possibilities and needs of customers and go to companies with this information so they can design products that do not exist," said Gamboa.

More on this topic

Panama: Bureaucracy Stalls Microinsurers

February 2015

Insurers claim that the market has been unable to grow due to the excessive number of arrangements to be made to register a channel for marketing products.

Industry participants argue that "... today alternate marketing channels are not open and regulation makes it difficult to register a marketing channel."

Costa Rica: More Competitors in Insurance Sector

September 2014

US insurer BlueCross BlueShield, has announced the opening of its operations in the country, which will be part of the Puerto Rican Triple-S Group.

From a statement issued by BlueCross BlueShield Costa Rica:

Insurer arrives in the country with plans for complementary health

Costa Rica: Insurance Agents vs. Brokers

August 2010

The country's new insurance law restricts which products agents can sell but the restrictions do not apply to brokers.

Insurance agents, due to their contractual relationship with insurance companies, can only offer their products. However, they may do this with different insurers at the same time, provided that these companies' products belong to different categories.

Insurance Market Heats Up in Costa Rica

July 2009

The demise of the state monopoly and the entrance of new competitors will feature the rise of the independent salesman as the main link between clients and insurers.

The Chamber of Insurance Companies (Canecos) is preparing for this new market, and will change its name and statutes to allow the new breeds of commercialization agents that will appear once the new insurance market regulating law comes into effect.