Between 2017 and 2018, Costa Rica's fire and property casualty rates increased from 18% to 33% and from 29% to 37%, respectively.
The general industry accident rate, which measures the proportion of claims payment expenses to total policy income, also increased in the last two years, from 48% in 2017 to 51% in 2018.
Data from the General Insurance Superintendence (Sugese) detail that during 2018 $139 million were paid for fire policies, and insurance companies disbursed $45 million for accidents and losses, which is equivalent to 33%.
The Superintendency of Insurance in Costa Rica is planning to start the process of opening up the market for compulsory automobile insurance in the first quarter.
In order to liberalize the market for compulsory automobile insurance, there first needs to be a review and approval of a decree which will focus on the regulation of the sale of insurance from the National Insurance Institute (INS) to private companies.
Total premiums grew by 11% during 2013 and amount to $1.046 billion, the highest figure since the market opened in 2008.
During 2013, the total insurance market grew by 11% and total premiums added up to $1.046 billion, while in 2008 the figure was $611 million. Life policies and motor were the most popular during 2013.
Data from the Superintendent of Insurance (SUG) reveals that sales of car insurance premiums increased by $38.6 million in the last two years, of which $9.6 million related to 2013. Up to December, total premiums placed in that category amounted to $232 million.
In the last interannual period personal insurance increased by 11%, general by 5% and compulsory by 9%.
From a bulletin on the Insurance Sector in November 2013 by the Superintendency of Insurance:
BASIC INDICATORS
The total amount of direct premiums collected reached c436,3 billion in November 2013. The involvement of voluntary insurance equaled the average of the last four annual periods - Nov 20l0-Nov 20l3), 73%.
Five years after the opening up of the market, there have been 500 new products and some prices have dropped by up to 40%, but penetration is still low.
In an interview with María Morales from Markets & Trends undertaken with the Superintendent of Insurance in Costa Rica, Tomas Soley, the official explained that the opening of the market has led competitors to offer more value added products.
Pan American Life and Assa accumulate 6% of the market, reporting up to May 2013 accumulated income of $12 million.
According to the Superintendent of Insurance (SUG) these two companies have the largest reported income. "Other market participants with significant shareholdings are Mapfre Seguros with revenues of $7 million and Aseguradora del Istmo with $4.5 million," noted an article in Elfinancierocr.com.
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."
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.
Privatization has attracted several foreign insurers and consumers are already benefiting from freedom of choosing between different options.
From 1924 to 2008, insurance was a state monopoly. Although this scheme was useful to the country and society in the twentieth century, it was impossible to continue in this way in a globalized market. Costa Rica suffered from a lack of modernization and diversification of the insurance market, and especially the absence of a regulatory agency.
Until the constitutional motion filed with the Sala IV is resolved, private insurers have decided not to participate in this market.
An appeal lodged in February 2011, affects the rules for the opening of the market issued by the Superintendent of Insurance (Sugese).
Nacion.com outlines in an article, "also under question is article III of the Law Regulating the Insurance Market (8653 Act), which authorized such privatization.
As published in the Official Gazette, Law No. 8956 Regulating the Insurance Contract is applicable on policies taken out from today.
Among the new features of the new, approved by the Legislative Assembly on 2 June, are the updates of what is considered insurable interest, the minimum amount of fees, definition and general aspects of the premiums.
"With this new legislation, a classification of insurance type (damage, fire, transportation, liability, etc.) has been established and conditions defined for life insurance" writes Sergio Morales writes in his article in Elfinancierocr.com
The new law regarding the regulation of insurance contracts (Ley Reguladora del Contrato de Seguros) regulates policy contracts and establishes rights and obligations for insurers and consumers.
"Among the new features of this law are the updates of what is considered insurable interest, the minimum amount of contributions, definitions and general aspects of the premiums", reported Sergio Morales Chavarria in his article in Elfinancierocr.com.
The Superintendence of Insurance (SUG) announced the approval of the branch of the insurance company.
Atlantic Southern Insurance Company (ASIC) joins ten insurance companies which are already authorized by SUG.
"According to a statement from SUG, ASIC has a conditional approval and, therefore, has four months to comply with various requirements of the Law which regulates the insurance market (8653)", reported Elfinancierocr.com.
One month away from the opening of the mandatory insurance market, the laws which will regulate it are still pending.
These regulations will establish operational rules which will allow competition in mandatory car policies and labor risk policies.
On the regulations, Javier Cascante, Superintendent of Insurance said to Nacion.com: "It establishes how to proceed with registration procedures for insurance companies that want to offer these policies and the information to be given to the insured."
Starting January 2011 the market opens for obligatory car insurance and work injuries.
The rules which will regulate the market are being analyzed and will be approved next November, said Superintendent of Insurance, Javier Cascante.
Cascante told Nacion.com, "... it is expected that transition to open competition allows for companies to provide additional coverage. Since it is obligatory insurance the products have standard features, but