Price Competition Amonst Panamanian Insurance Companies

Insurers say the highly competitive market is generating large variations in the prices of premiums, particularly in auto policies.

Friday, September 19, 2014

Growth in claims, primarily in motor insurance, which increased 14% in the first half of the year compared to the same period in 2013, is generating increases in prices of premiums.

Claims are growing at a faster rate than the premiums paid by customers, which rose by 9.94%, after going from $117,696,000 in the first seven months of 2013 to $129,395,000 between January and July this year. According to Berguido, these figures indicate that, contrary to what was expected, there are not yet "significant price increases" in premiums and they are not widespread.

Carlos Alfredo Berguido, executive director of the Panamanian Association of Insurers (Apadea), told that "... Insurers are cautiously guarding information because premiums are handled in a highly competitive and sensitive market in terms of prices. When prices are adjusted, either up or down, it often has an impact for insurers in less than a year. "

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