Opportunity for Insurance Sector in Nicaragua

Growth in sales of vehicles and homes in the country has generated an opportunity for the insurance business, in a market where penetration is only 3%.

Tuesday, November 7, 2017

Greater purchasing power and the consequent increase in purchases of homes, cars and other goods is generating interesting opportunities for other complementary businesses. 

The insurance sector is one such that can take advantage of this opportunity, since despite the fact that the purchase of homes and vehicles is growing, there is still not in general, much awareness of the importance of protecting against thefts, fires, road accidents, medical expenses and other eventualities.

See "Guatemala: Insurance market grows 9%"

According to Ernesto Abraham Rodríguez Muñoz, president of the Nicaraguan Association of Professional Insurance Agents (Anaps), "... in the region, Panama leads the insurance market, followed by Costa Rica and Guatemala, then El Salvador, Honduras and in last place is Nicaragua. In addition, while in the rest of the region insurance sales for people predominates, in the country insurance policies for protecting assets or against damages are sold more and to a lesser extent are those for protecting people."

Laprensa.com.ni reports that "...Despite the low penetration, Nicaragua is seen as an opportunity because growth of the economy means that there are more people with the possibility of acquiring insurance. 'Because there are insurance policies from the cheapest which cost 12 dollars a year up to any price, the limit will depend on the needs of the client. Here we are clear that previously the economic conditions did not allow people to acquire them because minimum per capita income was very low but that is changing ... In addition, the offer has been expanded with more accessible products', Rodríguez added."

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