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
The regulator (abbreviated SUGESE in Spanish) has given authorization for Best Meridian Insurance Company (BMI) to begin operations.
The US insurer is the tenth to be granted authorization to enter the Costa Rican market and specializes in personal insurance such as health, life and incapacity policies.
According to the country's insurance regulators, SUGESE, "the company's authorization is conditional on it complying with additional requirements over the next four months as well as registering the policies it plans to sell," reports Elfinancierocr.com.
The country's new insurance law restricts which products agents can sell but the restrictions do not apply to brokers.
Insurance agents, due to their contractual relationship with insurance companies, can only offer their products. However, they may do this with different insurers at the same time, provided that these companies' products belong to different categories.
The Panamanian insurer will offer offer 25 products in Costa Rica, available in both dollars and colones, the local currency.
In a press conference, the insurance company unveiled half of its product portfolio, already available to the public. These products will be sold via brokers and agents.
"ASSA has invested $9 million and expects to create around 31 new jobs in its first year of operations," reports Elfinanciercr.com.
Pan American Life Insurance was finally authorized by the Insurance Superintendence to operate in the country.
The company will sell individual life and health insurance, as well as group life, accident and health insurance. One of its core products is a policy for large medical costs, which will allow individuals to get expensive health care both in Costa Rica and abroad.
The Finance ministry suggested the State to acquire insurance to protect public infrastructure.
Minister Juan Alberto Fuentes Knight argued that the country is vulnerable to climate change, and remarked that the State should also generate reserve funds and negotiate precautionary loans.
Newspaper Sigloxxi.com also published comments by Raul Aguilar, president of the Guatemalan Insurers Association (AGIS): “The state owns assets such as bridges, the National Theatre, buildings, etc. They should insure them, as other countries do”.
Backed by the National Insurance Institute (INS), Bank BCR (“Banco de Costa Rica”) will offer insurance policies for serious illnesses.
These policies cover individuals if they are diagnosed with a serious disease such as cancer, cerebrovascular accident, heart attacks of renal failure.
Elfinancierocr.com detailed that the policy has more benefits: “if the client needs to be hospitalized because of the disease, INS will pay an additional $100 per day during no more than 90 days”.
The new insurance company was born as a result of the merger of “QBE del Istmo” Reinsurance Company and “Cooperativa Nacional de Educadores” (Coopenae).
“Aseguradora del Istmo Adisa SA” was authorized by the Costa Rican Insurance Superintendence to sell individual health and life insurance in the country.
Panamanian “QBE del Istmo” owns 76% of Adisa, while “Cooperativa Nacional de Educadores” (Coopenae), from Costa Rica, owns the remaining 26%.
Pan American Life Insurance Costa Rica S.A. was authorized to operate by Sugese, the Insurance Superintendence.
The insurance company requested authorization on September 2009, and has now become the sixth to enter the Costa Rican market.
“The authorization does not imply its immediate operation, it must sill comply with other requisites established in the Insurance Market Law”, reported Elfinancierocr.com.
It groups all the insurance companies authorized to operate in the country.
Called ACAR (Costa Rican Association of Insurers and Reinsurers), it is chaired by Guillermo Constenla, head of INS, the National Insurance Institute.
“Constenla explained that the association has been created to assist the Insurance Superintendence in generating a more fluid insurance market”, reported El Economista.
"ASSA Compañía de Seguros" was authorized to sell individual and general insurance.
The Panamanian company had submitted its request to operate in Costa Rica back in July 22nd.
From Elfinancierocr.com: "A number of final requirements are still pending, like making a minimum operational deposit in the Central Bank, explained Insurance Superintendent Javier Cascante".
Illegal insurance would continue existing in Costa Rica, despite opening the market and tighter supervision.
The former monopoly by the National Insurance Institute of Costa Rica (INS) favored the sale of insurance by companies without presence in the country, specially in the life insurance segment.
Eduardo Recinos is the Director of Insurance at Fitch Ratings Centroamérica.
Alico Costa Rica was authorized to operate in the country, becoming the second foreign capital insurer.
Backed by Chilean capital, the insurance company plans to sell individual insurance such as life, rents, accidents and health.
"It is the second foreign-capital insurer authorized to operate in the country by sector supervisor Supen. The first was Panamanian insurer Aseguradora Mundial S.A.", reported local newspaper Prensalibre.cr.
Insurer Pan American Life Insurance Group (Palig), submitted a request to operate in the country.
Its President, José Suquet, announced the company's interest in commercializing individual and collective life insurance, as well as accident and health insurance, while staying out of vehicle and disaster insurance.
The executive told Nacion.com that "...they expect to commence selling insurance in the country in the first quarter of 2010...