Because Costa Rica requires foreign visitors to take out a local policy, which costs more than $275 for a two-week stay, tour operators are asking that insurance taken out abroad be accepted as an incentive for tourist arrivals.
After more than four months of the country's borders being closed to tourists, commercial flights resumed on Aug. 3 with the arrival of an Iberia plane carrying more than 200 passengers from Spain.
Total insurance premium revenues in Costa Rica totaled $1.261 million in 2018, 3% more than in 2017.
According to figures from the General Superintendence of Insurance (Sugese), between 2017 and 2018 the per capita spending of Costa Ricans on insurance increased slightly by 1.8%, from $248 to $252.
In Costa Rica, the average premium for Compulsory Automobile Insurance for 2019 was approved to increase by 12.5% with respect to current rates.
After requests made by the National Insurance Institute (INS) to the General Superintendence of Insurance (Sugese), it was reported that the increase was approved, so private vehicles will pay ¢22.192 ($35) for the insurance premium next year.
Annual average per capita expenditure on compulsory and voluntary insurance policies grew from $140 in 2009 to $246 in 2016, approaching the Latin American average, which stands at $250.
In addition to an increase in the supply of insurance that came after the end of the market monopoly in 2008, insurers and authorities at the Superintendency also attribute the increase in spending to regulation of the "gray market" which existed before the opening."...These were policies that were sold illegally during the monopoly and were concentrated in health insurance sector."
The existence of 26 active brokerage companies confirms the confidence that this marketing channel continues to earn in the insurance market.
Since the opening up of the Costa Rican insurance market in 2010, momentum has gained in the activity of insurance brokers, going from one single company to 26 companies. Added to this are two entities with conditional authorization given by the Superintendent of Insurance (SUG): Innova Sociedad Corredora de Seguros and Akros Corredores de Seguros, while another two have recently filed applications, and are in the stage of reviewing regulatory documents, according Elfinancierocr.com.
The industry´s share of the GDP also went down, going from 2.3% to 1.9% in 2015, in a context of lower prices and increased accidents.
From a Bulletin by the Superintendent of Insurance of Costa Rica (SUG):
Total premium revenues reached ¢ 564.1 billion ($ 1.052 billion) in 2015, going down by 9%. Only general insurance revenues grew in a form similar to production and in a context of lower prices, as measured by the CPI (Consumer Price Index).
The National Insurance Institute has announced it will modify two regulations so that non irrigated rice crops can once again receive coverage which was suspended earlier this year.
Rice farmers who grow grain on unirrigated land may be eligible sometime before March to be covered by the National Insurance Institute (INS) which suspended coverage earlier this year.
Rules have been published in Costa Rica which must be followed by any private insurance company willing to sell mandatory vehicle insurance, which until now could only be issued by the state run insurance company.
MOPT regulation number 39.303 published in the Official Newspaper, La Gaceta, establishes maximum profit margins, the conditions to be met by insurance companies who sell Compulsory Vehicle Insurance (SOA by its initials in Spanish) and other considerations.
The Superintendency of Insurance has asked for explanations from the National Insurance Institute over recent announcements made on grants and loans for road works and other government programs.
The superintendent argues that while the National Insurance Institute (INS) has the power to grant loans, the authorization to do so "is contingent upon the best practices of the insurance business."Nacion.com adds that "...The Law Regulating the Insurance Market dictates that 25% of the profits of the Institute are transferred each year to the State; the remaining 75% is to be used to capitalize the insurance business. "
Premiums for personal policies led growth in 2014 compared to the previous year, followed by general and mandatory policies.
From a statement issued by the Superintendent of Insurance in Costa Rica (SUG):
Voluntary insurance represent 69% of total premium revenue, showing an increasing trend across the board. Total premium income, including compulsory policies, was $1.1674 billion.
Insurers are limited to selling insurance policies and are not allowed to sell commercial bonds.
After the Insurance Superintendence requested clarification on whether or not insurers were authorized to sell bonds, the Attorney General's Office concluded that "... insurance companies should be limited to its insurance business, therefore they are not allowed to sell commercial bonds. "
Between January and September revenue from sales of these policies increased by 74% compared to the same period in 2013, with the sale of group insurance policies to companies being the factor driving the growth.
According to data from the Superintendent of Insurance, in January-September, the sector as a whole has accumulated $116 million in premiums for such policies.
The Costa Rican State insurance company will have to pay $174,000 as a penalty for "improving any offer made by their competition to their customers."
The Antitrust Commission imposed a fine of 94 million colones ($174,000) on Instituto Nacional de Seguros (INS) in a case reported by the Superintendent of Insurance in 2011, a year after the opening up of the market.
As of July claims for payments totaled $284 million, with personal insurance policies having increased the most.
In the case of personal accident insurance, registered insurance companies reported an increase of 13% between July 2013 and March this year. "...Within this category, those that grew the most were those of health and accident insurance, going from $26 million to $28 million. "
The sale of life, accident and health insurance rose from $113 million in June 2013 to $148 million in the same month in 2014.
Figures from the Superintendence of Insurance (SUG) show the growing interest on the part of Costa Ricans in policies for medical expenses and life coverage. While the premiums for personal expenses policies, including the two mentioned above, grew by 21% last year, the increase in overall policies in the same period was 12%. In total they invested $566 million.