Panama: Bureaucracy Stalls Microinsurers

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.

Monday, February 2, 2015

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

Amilcar Córdoba, CEO at Seguros FEDPA, told Capital.com. pa "... the industry has high hopes that the new Superintendent of Insurance and Resinurance in Panama (SSRP), Jose Joaquin Alvarado Riesen, will improve some elements that need to be refined in order to sell microinsurance."

Meanwhile, Dino Mon, executive vice president and general manager of Mapfre Panama, added "... Insurance companies are ready to start developing and offering Panamanians alternative products such as microinsurance, but they need a platform which is promoted from a government level. "



More on this topic

Opportunities in Microinsurance in Panama

August 2013

The venture is in micro-markets with products costing up to $30 per year and with compensation ranging from $10 thousand to $15 thousand.

According to Luis Della Togna, Superintendent of Insurance and Resinsurance in Panama (SSRP), "the idea is to launch low-cost products in order to generate a micro-culture among the middle and lower classes."

Regional Micro-Insurance Supply Deficit

August 2013

In Central America microinsurance coverage is minimal, with rates well below the rest of Latin America.

Throughout the region, Guatemala leads they way in such services with 0.58%, followed by El Salvador (0.13%), Nicaragua (0.12%), Panama (0.06%) and Honduras (0.05%) . According to a study by the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB), Salvadorans prefer micro-life insurance (112,000 people) and health insurance (78,000 people).

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.

Micro-insurance Companies for Low-income Sectors

August 2010

For the past year Panama's insurance regulator has been reviewing how to create a micro-insurance market.

Luis Della Togna, head of the insurance regulator, discussed the idea but gave no indication of when micro-insurance companies could be introduced into the market.

"As a guide for Panama's insurance sector, Martha Rodríguez, commercial vice president of Mapfre Seguros Generales Colombia, explained that in Colombia 88% of the country is poor and therefore micro-insurance policies were created to supply this market," reports Laestrella.com.pa.