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.
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.
During the Central American Insurers Congress they requested the Legislative to pass the Insurance Activity Law.
The law currently in effect dates from 1966. A reform was submitted to Congress by the Guatemalan Association of Insurance Institutions.
Enrique Rodríguez, president of the Association, told Prensalibre.com. that “…Guatemala has the lowest insurance penetration rate of Central America (1.1% of its GDP).
In 2008 the insurance companies have paid $84.6 million more in claims than for the same period in 2007.
The expenses incurred by insurers for total claims paid out as of September were $241.8 million, or $84.6 million more than for the same period in 2007 when the payments totaled $157.2.
The increase in payments was recorded for the main branches such as life, fire and theft coverage.
The Central Bank of Honduras has increased the minimum amount of capital required for insurers and re-insurers by amounts ranging from 262,881 dollars to 788,643.
The demand for capital is independent of the request for higher reserves for insurers.
Under the rules, the monetary authority reviews capital requirements every two years. The amount is based on economic growth of the nation, which was 6.3 percent in 2007.
Panama's Interoceánica de Seguros reports that its auto insurance sales have increased by 85 percent so far this year compared with the same period of 2007.
Salvador Morales Baca, the company's general manager, said auto insurance was a risky though profitable business.
Panama-based insurance companies wrote US$236 million in premiums in the first quarter, a 31 percent increase on the same period of last year.
Mauricio De la Guardia, president of the Panamanian Insurance Association, said the rate of growth was likely to be maintained in the second quarter as well.
Legislation to end an 84-year insurance monopoly in Costa Rica recently received first reading in the Legislative Assembly. The bill includes several important changes for the insurance industry.
It would allow insurance operations to be carried out by approved companies, including cross-border insurance for several cases regulated by the legislation. These include re-insurance and the assignment of insurance risks to foreign companies.