Private Insurance in Costa Rica Not Taking Off

Three years since the privatisation of the insurance sector, the state agency (INS) remains the main entity in the market.

Wednesday, November 23, 2011

The market dominance of the National Insurance Institute (INS), with 94% of total premium income, is, in the opinion of the Association of Private Insurance (AAP), a result of the supervision exercised by the Superintendency of Insurance (Sugese).

"'The interpretation we gave to the legislation was that the product was registered and could be sold.The reality is not like that, that's where we have a very big backlog," said Kevin Lucas, manager of the insurer Adisa.

This position is contradicted by Javier Cascante, Superintendent of Insurance, who noted that the consolidation of industry policies may take many years, as it relates to technical products, about which Costa Ricans have little knowledge", reported

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Costa Rica’s Insurance Market

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In the newly privatised insurance market, companies are competing with the National Insurance Institute (INS in Spanish) to increase their portfolios.

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New Association of Insurance Companies in Costa Rica

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It groups all the insurance companies authorized to operate in the country.

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“Constenla explained that the association has been created to assist the Insurance Superintendence in generating a more fluid insurance market”, reported El Economista.