Through eight financial institutions enterprises in the agricultural sector will have access to a collective crop insurance with Instituto Nacional de Seguros.
Some of the crops covered by this insurance are: rice (waterlogged, complementary irrigation and rainfed), squash, banana (organic and traditional), cocoa, coffee, Indian cane, sugarcane, onion, spicy export pepper, sweet pepper, beans, bulb flowers, leather leaf fern and hydroponic vegetables, corn, melon, watermelon for export, yam and taro for export, oil palm, potato, papaya, pepper, pineapple and plantain for export, Jaltepec burley tobacco, teak and melina , tiquizque, cassava, yampi, ñampí for export, and carrot.The list could be expanded on pending a study by the INS.
The reduction of 30% in premium income from compulsory work risk insurance accounted for most of the 8% decline in revenues from total premiums up to March.
In March general insurance and personal insurance maintained the upward trend that had been seen the previous months, with growth rates compared to the same month in 2014 of 6.1% and 8.3%, respectively.
In the first quarter of the year, total premiums in the country totaled $338 million, 5% more than in the same period last year, driven by automobile insurance.
Vehicle insurance is the most in demand, reporting $63 million in premiums from January to March 2015, representing an increase of 11.8% compared to the same period last year. The second sector reporting the most growth is health, with premiums of $57.3 million, ie an increase of 6% and finally the premiums for group life reported $41 million, according to the Superintendency of Insurance and Reinsurance in Panama.
A state-run insurance company project aims to create an insurance group for crops in order to encourage the use of these policies, the costs of which are high due to the high risk they present.
The Ministry of Agriculture and Livestock (MAG) and the National Insurance Institute (INS) are backing the concept of group insurance for agricultural producers so that they can have increased access to crop insurance.
The Colombian company signed an agreement to acquire the shares of Insurance Banistmo, whose participation in the Panamanian market is 8%.
From a statement issued by Grupo Sura:
Suramericana SA, a subsidiary of SURA Group which specializes in the industry for insurance, health and occupational hazards, signed a contract for the acquisition of Insurance Banistmo, which, once the relevant authorizations have been obtained, will allow the Company to consolidate its presence in the Central American market, adding this operation to Seguros SURA Panama.
Little knowledge on the subject and difficulties in properly measuring the risks are some of the causes of the limited supply of this type of coverage.
Currently only one company, out of the 5 operating in the country, provides insurance for the agricultural sector. At the end of 2014, written premiums for this sector where only 0.05% of the total, ie $ 2.4 million.
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.
Technical policies reported growth of 15.3%, followed by life insurance which achieved an increase of 14.3%, fire insurance and allied lines with 13.3% and health insurance with 10.8%.
From a statement issued by the Panamanian Association of Insurers (Apadea):
The Panamanian insurance market closed last year with growth of 8.1%, with a lot of challenges to face in 2015 such as promoting 100% penetration for policies, sufficient development in rates and more personalized underwriting.
The segment of medical expenses policies registered the largest increase, up 26% over the previous year.
The Guatemalan Association of Insurance Institutions (AGIS) is looking to give greater impetus to reinsurance this year, as currently only one third of the total premiums are ceded to reinsurers.
Salvador Leiva, president of the AGIS told Elperiodico.com.gt that "...
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.
Fitch Ratings expects moderate growth in premiums in Costa Rica, increased interest in personal insurance in Guatemala, and stable performance in Nicaragua and Honduras.
From the report "Outlook 2015: Central American Insurance Sector":
Costa Rica:
Moderate growth in premiums
Since the Costa Rican insurance industry opened up to private competition in 2008, the market has experienced rapid and consistent growth in premiums.
Insurers have started to issue these policies which compete with bank share and performance guarantees.
The National Insurance Institute (INS) and Oceánica Seguros are the two companies which have been offering such policies since this year. Meanwhile, the company ASSA will start to offer them in in 2015 and Mapre is still adjusting its offers with a view to supplying them in the future.
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.
Between January and September crop insurance generated premiums of $1.9 million, well below the performance of other policies, such as life, which increased by 10% compared to the same period in 2013.
According to the Guatemalan Association of Insurance Institutions (Agis), "... lack of awareness among the population to ensure their crops is one of the reasons why agricultural insurance has shown only modest growth."