Fitch Ratings expects moderate growth in premiums in Costa Rica, increased interest in personal insurance in Guatemala, and stable performance in Nicaragua and Honduras.
From the report "Outlook 2015: Central American Insurance Sector":
Costa Rica:
Moderate growth in premiums
Since the Costa Rican insurance industry opened up to private competition in 2008, the market has experienced rapid and consistent growth in premiums.
Between December 2012 and December 2013 revenue from premiums went from $138 million to $156 million.
The pace of growth in the insurance sector in Nicaragua increased during the first quarter of 2014, registering premiums of $43 million, an increase of 21% compared to the same period in 2013.
Laprensa.com.ni reports that "... of the total premiums sold during 2013, the property insurance segment accounted for 71% of total sales, receiving $111.15 million, reflecting a growth of 10 5% compared to the $100.56 million sold in 2012. "
Private insurers are beginning to outperform the state insurance company and have so far captured a 40% market share.
The ranking of the premiums made by the Superintendency of Banks and Other Financial Institutions (Siboif) reveals that in the case of Seguros América S.A.,in the first quarter of 2013, they led the market with 29.3% of the sector. The company following them is Instituto Nicaragüense de Seguros y Reaseguros (Iniser) with 26.4%, ASSA Compañía de Seguros SA with 18.9%, Seguros Lafise with 17,5% and Mapfre Nicaragua with 7,8%.
Fitch estimates that premiums in the region should grow measuredly, with the greatest dynamism seen in Costa Rica, the second insurance market in the region.
A statement from Fitch Ratings reads:
Fitch Publishes 2013 Prospects for the Insurance Sector in Central America.
The outlook on the ratings of insurance companies in different markets of Central America will remain stable in 2013.
A report by Fitch notes the momentum in the insurance sector in Central America and its growth potential.
From the report by Fitch Central America is entitled "Performance of Insurance Industry Central America: Well Positioned for Growth ":
The insurance industry in Central America managed to increase premium production by 12% compared to 2010, where Panama, Guatemala and Honduras recorded an above-average growth.
ASSA Group acquired 98.7% of stock of Metropolitan Insurance Company.
Eduardo Fabregas, Vice President of ASSA Insurance Company of Panama, told media: "With this acquisition, we will provide a serious and responsible service to our clients and brokers, also Metropolitan ASSA will have more resources at their disposal, offering a regional service to clients who do business outside of Nicaragua."
A bill expected to be passed next week would open the door for foreign insurers.
Congressman Wálmaro Gutierrez, from the committee that wrote the bill, explained that the insurance industry is currently regulated by a decree from 1970, which was reformed on several occasions. The last modification closed the insurance market to foreign participants.
Costa Rica's state insurer, Instituto de Seguros de Costa Rica (INS), could sell insurance in other countries by creating a corporation.
The Constitutional Chamber has cleared the way legally for INS to sell its services abroad.
This has reawakened plans for the insurer to expand into Nicaragua and Panama, which it proposed as early as last Decmber.