Experts on the prevention of money laundering will be meeting in Panama City on October 19th, 2014 to discuss the impact of this practice in the insurance sector.
Organized by the Superintendency of Insurance and Reinsurance the Forum will bring together enforcement officers from insurance companies registered in the country.
The Superintendent of Insurance and Reinsurance of Panama, Luis Della Togna told Laestrella.com.pa that "...
Between January and September insurance sales increased by 8.5% compared to the previous year, totaling $892 million.
Most policies sold in that period were in the auto and health categories according to information from the Superintendency of Insurance and Reinsurance in Panama.
The auto insurance sector recorded sales of $153.7 million and health $146.5 million. In addition, group life insurance achieved sales of $110 million.
A law intends to attract reinsurance companies, by giving them the same benefits enjoyed by the Headquarters of Multinational Corporations.
The information was confirmed by the Panamanian superintendent Luis Della Togna, who added that the project could be ready before the end of the year. He also explained that the aim is to leverage the competitive advantages offered by Panama and have a law that addresses the latest trends in supervision and regulation on this topic.
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."
With the "interesting economic growth in the country more and more companies are setting up in Panama, some even specialize in the field of life and health for the three class levels," said the official.
During the first five months of 2013 $97 million worth was sold, predominantly in the categories of car insurance, health and group life policies.
According to Carlos Berguido, director of the Panamanian Association of Insurers (Apadea), the increase is attributed to the immediate responses to claims by owners of insurers, resulting in consumers acquiring more policies, because of the trust inspired by claims being paid quickly.
During the first quarter of this year, the sum of the premiums of Assa Compañía de Seguros, Compañía Internacional de Seguros and Mapfre Panamá was around $198 million.
This ranking of premiums prepared by the Superintendency of Insurance and Reinsurance of Panama, shows that Assa Compañía de Seguros comes first in the list with $80.3 million (20.18% market share), followed by Compañía Internacional de Seguros, with $65.3 million (16.41%) and Mapfre Panama in third place with $52.3 million and 13.13% of market share.
Insurers paid $133 million to their customers during the first quarter of 2013, $47 million more than in 2012.
"The biggest financial outlays occurred in the lines of auto, health and fire, $29.7 million, $28 million and $16.3 million respectively," noted an article in Laestrella.com.pa.
As for companies, ASSA is a leader in the insurance market, having 20.22% of the sector, followed by Compañía Internacional de Seguros with 16.43% and in third place is Mapfre Panamá, S.A. with 12.79%.
With the amendment of Law 63 of 1996 it is intended that international reinsurers will invest in the country making it a hub for the whole continent.
According to Luis Della Togna, Superintendent of Insurance and Reinsurance of Panama, a draft has been drawn up which amends the law and thereby strengthens supervision, control and regulation of the sector.
From January to December 2012, sales of insurance premiums reflected an increase of 8.16%, reporting a total of more than $138,635,000.
Panamaamerica.com.pa reports that "up to December 2012 were offered 85 million 879 thousand 82 dollars more than the previous year, which shows that consumers are becoming aware of the importance of having an insurance policy, indicated entrepreneurs from the insurance and reinsurance sectors in Panama. "
The country aims to position itself as an international or reinsurance hub, where companies meet the needs of other companies in Latin America
The Superintendent of Insurance and Reinsurance, Luis Della Togna, said there is already interest from several companies, including Lloyd's of London, who see opportunities for growth in the region.
According to an article in Prensa.com, "From Panama these companies could attend to insurers in Latin America.
Insurers sold premiums worth $273.7 million in the first quarter, largely due to vehicle insurance.
An increase in the number of vehicles, rising prices for parts and road realignment works are factors in a higher number of claims, which has led to an increase in insurance sales.
In the first three months of 2012, premiums totaled $273.7 million, reported the Insurance and Reinsurance Superintendence of Panama (SSRP in Spanish), according to Laestrella.com.pa.
In the first four months of this year $349 million worth of premiums have been signed.
The growth in premiums was overshadowed by a large increase in claims, which grew by 20% in the aforementioned period.
One of the sectors with the largest increase in claims is fire, which reported an amount of $108 million between January and April.
An article in Prensa.com notes: "The industry is concerned about the behavior of the claims, because if they do not start declining this will affect their profitability at the end of the year. But overall activity is growing strongly, driven by the boom in the economy. "
Panama’s insurance industry grew from 17 participants two years ago to 27 today, and $850 million in insurance policies.
An update to Panamanian insurance legislation has been discussed for the past 8 years. Talks are currently being held between insurers and regulators to modify Law 59 of 1996, the one currently in force in a growing, competitive insurance market.
Up to April, private health insurance increased 13.69% when compared to the same period of 2008.
Problems with medical care in the public system have driven more people to purchase private health insurance.
Prensa.com reports: "There are many different packages in the market, each one with diverse options... A 25 year old would pay a monthly fee of $47, whilst a 50 year old pays around $140 each month".