In Central America microinsurance coverage is minimal, with rates well below the rest of Latin America.
Throughout the region, Guatemala leads they way in such services with 0.58%, followed by El Salvador (0.13%), Nicaragua (0.12%), Panama (0.06%) and Honduras (0.05%) . According to a study by the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB), Salvadorans prefer micro-life insurance (112,000 people) and health insurance (78,000 people).
During the first half of 2012, the insurance sector in Latin America had a premium volume of $77,085 million, maintaining growth rates of two digits.
According to César Quevedo, deputy director of the Institute of Science at Seguro de Fundación Mapfre, the insurance industry is "key" to this global market.
On presenting the report, "The Latin American insurance market," the official noted that this "is a key region for the present and future in global insurance."
How insurers are affected by the new regime requiring reports to the U.S. government from foreign financial institutions.
An article in Martesfinanciero.com reports that in Panama, "those involved in the sector are awaiting the outcome of an agreement between Panama and the U.S., so as to 'adhere to a regulation that has not been signed yet", says Dino Mon, vice president of Mapfre Panama. "
A report by Fitch notes the momentum in the insurance sector in Central America and its growth potential.
From the report by Fitch Central America is entitled "Performance of Insurance Industry Central America: Well Positioned for Growth ":
The insurance industry in Central America managed to increase premium production by 12% compared to 2010, where Panama, Guatemala and Honduras recorded an above-average growth.
A Fitch Special Report on the insurance industry in Central America indicates a stable outlook with conservative growth.
SUMMARY
Insurance penetration remains stable.
Fitch estimates that at the end of 2011, premiums for the insurance sector in Central America will be U.S. $3.275 billion, increasing by almost 7% compared to 2010. However, the penetration of the industry in the various countries would remain below that recorded in other Latin American countries (less than 5%), where only Panama will exhibit the highest level (3.5%), in line with the country's significant economic expansion.
Banmédica is the largest private health organization in Chile, with investments in Colombia and Argentina, and with subsidiaries in the insurance sector.
With an average investment of $70 million annually for the past 12 years, Banmédica provides a wide range of health-related services, including clinics, laboratories, medical centers and medical rescue units. It also provides health insurance services.
More and more Americans are traveling to destinations in Central America and other areas in order to receive medical treatment
Doubts about the medical treatment offered in Latin American countries that existed some years ago have disappeared.
Currently Americans perceptions regarding the quality and prices of medical services offered in countries such as Costa Rica has changed significantly.
More than 250 insurance companies met in San Pedro Sula, Honduras.
Improving the way large projects that contribute to economic development in the region are insured and improving customer services are some of the challenges the insurance companies put forward to companies participating in the conference.
An article in Latribuna.hn notes: "As part of the agenda, a keynote speech was given by the former president of Colombia, Alvaro Uribe, as well as talks on other issues related to private insurance business, in the context of global conditions and the American situation, in particular. "
Fitch Ratings discussed Central American insurance sector projections for 2011.
The slow recovery of most Central American economies after the effects of the 2008 – 2009 recession is also reflected in the activity of the insurance industry. With an annual global growth of only 5% (in Dollar terms), the six countries which form Central America (El Salvador, Costa Rica, Guatemala, Honduras, Nicaragua and Panama) have not yet managed to regain the lost path of 2009.
Fitch Central America published a special report called "Central American Insurance Sector: Performance in the First Half of 2009 and Outlook for 2010".
Despite the economic contraction of Central American economies in the first half of 2009, the region's insurance industry grew 3% (excluding Panama) when compared to the same period of 2008, reaching $928.1 million in net premiums.
The insurance industry kept on growing, albeit at a lower pace, in spite of economic and financial crisis.
In 2008 this industry sold 17% more insurance than in 2007, summing over $3 billion sales. It slowed considerably in 2009, but managed to maintain positive growth numbers.
From Martesfinanciero.com: "In order to achieve this, insurers had to resort to diverse measures, such as strategic alliances, brand changes, better prices and more services".
Summa Financial Special: Presenting the classification and analysis of the regional financial system.
In the April edition, Revista Summa will present its bank, insurer and stock exchange rankings. On the whole, it shows a healthy sector with the capacity to face the challenges ahead. Regional banking groups have gained greater importance and the magazine identified ten that represented 33% of the assets for 2008.
Central America's leading insurer, Aseguradora Mundial signed an agreement with Swiss Life Network to broaden their cooperation in the region.
Aseguradora Mundial is the main specialized insurance unit of Panama-based Grupo Mundial. Swiss Life Network is a leader in the provision of insurance for employees.