The Constitutional Chamber of the Supreme Court has rejected an appeal that opposed the opening of the market, which includes Occupational Risks and Compulsory Auto Insurance.
This constitutional ruling completes the insurance market opening which started four years ago. The end of monopolization of this type of insurance was scheduled for January 1, 2011, but was stopped because of a constitutional motion filed on December 21, 2010.
The figure is an estimate of the amount of damage caused by the recent floods, which need to be recovered by homeowners who took out insurance against natural disasters.
Panamaamerica.com reports that the executive director of the Panamanian Association of Insurers (Apadea), Carlos Berguido, said: "There still isn’t an exact number that indicates exactly how many families and homes have been affected by the recent floods, and whose concerns will be mitigated because their assets were covered - against natural disasters-by an insurance policy. "
The Central Bank of Costa Rica is putting to public consultation the Regulation for Defence and Consumer Protection Insurance.
The regulation will be under consultation until 27 December.
Nacion.com reports that "According to this regulation, all natural or legal persons who are properly identified can make complaints or appeals with insurance firms provided these requests relate to their interests or legally recognized rights."
In Costa Rica compulsory motor insurance remains the monopoly of the state run insurance company, the INS.
A constitutional action filed against the opening up of the market for the Workplace Insurance, arguing that "this social insurance is designed to provide universal coverage at no cost to all people working in the country, against any accident or illness resulting from their activity ", has also detained the liberalization of the market for compulsory insurance for motor vehicles.
The operations of the supervisory agencies for financial institutions, pensions companies, the stock market, and insurance market, has an annual cost of $48 million.
The government of Costa Rica is trying to organize it so that the institutions regulated by these superintendents, assume a greater share of these costs, 80% of which so far are paid by the Central Bank.
The National Insurance Institute of Costa Rica plans to buy a company in Panama as the first stage in its regional expansion strategy.
Guillermo Constenla, chief executive of the company, said that the company has assets of $1.05 billion and has ease and capacity to invest. As an example Constenla indicated that the INS has invested $1.867 billion in "the most important banks" in Costa Rica.
The approval of a Law of April 12, 2012, allows the sale of insurance policies through what are called "alternative marketing channels."
The proximity to the final consumer will contribute to the generation of new products, said Carlos Berguido, executive director of the Panamanian Association of Insurers, "... it will generate" a much larger range of products. Any customer will be able to have a number of amazing products. "
Costa Rican insurers received 2120 claims after the earthquake on September 5, relating to damage to homes.
The National Insurance Institute (INS), Mapfre Seguros de Costa Rica and Assa Insurance Company are the three insurers in the country authorized to market this type of policy.
Most of the claims are being processed by the INS, with 1,012 homes and 1,040 for business premises, Mapfre and Assa have 40 and 25.
In Panama the sale of agricultural insurance policies up to August has seen a 47% increase compared to the same period last year.
Inclement weather has encouraged the agricultural sector to take up these types of policies. A total of 1,442 producers have insured 25,175 hectares of crops and about 405 have insured about 8472 head of cattle.
Agricultural insurance contracted in the month of August 2012 amounted to $2.4 million.
Despite the de-monopolization of the market four years ago, state institutions continue to obtain their insurance with the National Insurance Institute (INS).
An article in Nacion.com reports that "Although the Law Regulating the Insurance Market (LRMS) leaves open the possibility for public sector entities to buy private insurance policies, few enterprises have contracted their services."
In the first five months of the year, the insurance market recorded an increase of 8% compared to the same period in 2011.
Raul Betancourt, legal advisor to the Salvadoran Association of Insurance Companies (ASES), noted that total industry premiums amounted to $205 million. "This growth is attributed to the pension insurance and life insurance contracts", he said.
The canal country aims to become an International Centre for Reinsurance, for which it will need to make the place more competitive and gain more acceptance in global markets.
According to an article in Capital.com.pa "The Panamanian insurance market is experiencing a period of readjustment in all its regulatory apparatus, a new law governing the sector has already been implemented, and now they are working on draft bills to regulate the sector and one for reinsurance brokers. "
Four years after the de-monopolization of the market, the National Institute of Insurance holds 91.5% of insurance premiums and 12 private insurance companies have won the remaining 8.5%.
An analysis of the topic made by Juan Pablo Arias in his article in Nacion.com, shows that the main benefit of the new competitive environment is growth of the sector in terms of policies issued, which increased by 24% from the date of de-monopolization, with growth attributed to the lowered rates.
Oceánica de Seguros, founded on Venezuelan capital, is the tenth insurance company to be incorporated into the Costa Rican market after its de-monopolization in 2008.
The superintendent of insurance, Javier Cascante, said the company, which is the eleventh to join the insurance market after its opening, will have a joint operating license, for personal and general policies.