In Panama the company Istmo Compañía de Reaseguros has been forced to liquidate due to "lack of commitment on the part of the company to correct the deficiencies" that led to this intervention.
From a statement issued by the Superintendency of Banks in Panama:
April 5, 2017.The Board of Directors of Insurance and Reinsurance in Panama ordered the forced liquidation of ISTMO COMPAÑÍA DE REASEGUROS, INC.. based on Law No. 63 of September 19, of 1996 through which reinsuranceoperationsand companies engaged in this activity are regulated, to Law No. 12 of April 3, 2012 law regulating insurance activities and other provisions.
Fitch projects a growth close to 15% in premiums this year, in a context of economic stability and consolidation of strategies by insurers.
From a report by Fitch Ratings:
Strong growth in premiums:the Costa Rican insurance industry grew by 16% in terms of premiums written up to the close of 2016, the result of a reclassification in the financial figures of the state - owned company and the largestmarket participant, Instituto Nacional de Seguros (INS), which was influential in the growth of -9% in 2015. Excluding this reclassification, the sector's growth reached 9% at the end of 2016, which is still a favorable level, according to Fitch Ratings.Meanwhile, private equity insurers recorded premium growth of 35%, thanks to innovation in products and marketing channels.
The Tourism Authority is considering redeploying the benefit of free insurance for medical expenses for visitors, but adjusting the scope and term of the coverage.
Authorities are assessing the changes that would be needed in order to implement the free health insurance program for tourists once again, seeing as it was such a valuable promotional tool.The benefit was implemented by the Martinelli administration in 2011 andcanceled three years later, due to its high cost.
In January $136 million worth of insurance premiums were sold, below the $138 million sold in the same month of 2016.
The decrease compared to January last year is mainly explained by a reduction in premium segments such as maritime, aviation, technical, various risks and bonds.
Laestrella.com.pa reports that "...In the first month of this year, insurance sales associated with maritime activities decreased by 65.1% and those related to the airline industry shrank by 9.7%.Similarly there were contractions in sales in the technical category (-26.1%), insurance of various risks (-29.3%) and bonds (-4.6%)."
The Superintendency has taken administrative and operational control of Aseguradora del Istmo S.A., due to a number of deficiencies identified in the operation of the company.
From an announcement by the Superintendency of Insurance and Reinsurance:
The Superintendency of Insurance and Reinsurance of Panama, through Resolution No.
In 2016 subscriptions to insurance policies grew by only 0.5% compared to the previous year, which is below the growth rate of 3.4% recorded between 2014 and 2015.
The speed at which premiums are growing in the Panamanian insurance market has been declining since 2013.Between 2012 and 2013, registered growth was 9.3%, followed by an increase of 7.9% between 2013 and 2014.
Voluntary insurance made up the main component of growth compared to 2015, with a consequent reduction in the share of compulsory insurance.
From a monthly report by the Superintendent of Insurance:
In 2016, revenues from insurance premiums grew by ¢90.7 billion (16%) compared to 2015, closing the year at ¢655 billion.Growth was widespread by category and in all cases, higher than the main macroeconomic indicators.
Ficohsa Group has announced the acquisition of 100% of the capital of the company Seguros Alianza, which will be operated through the subsidiary Ficohsa Seguros.
The formalization of the transaction was recently approved by the Superintendency of Banks of Guatemala and the Superintendency of Panama.
A new law is being prepared that will change the capital requirements and other requirements for granting licenses to reinsurers operating in the country.
The proposal by the Insurance and Reinsurance Superintendency of Panama was revealed weeks after the intervention was ordered into the reinsurer Istmo Compañía de Reaseguros.This process was not the only one in 2016, as the company Seguros Confianza was also taken over in September.
Income from insurance premiums grew by 16% compared to the same month in 2015, reaching $1.021 billion, in a market with great growth potential.
From the Monthly Bulletin by the Superintendent of Insurance:
Compulsory insurance tending become more stable.The SOA, as explained in previous bulletins, showed a sharp increase in December 2015 to January 2016 (<236 100 000 000) due to a change in the accounting records, but in the rest of the year its growth every month has been close to the average, which maintained very high annual growth, but is tending to become more moderate.
According to Fitch Ratings growth in the insurance sector in Central America in 2017 will be driven by the markets of Costa Rica and Nicaragua.
From the report "Outlook 2017: Insurance in Central America" by Fitch Ratings:
Rating Outlook Stable:Fitch Ratings´outlook for insurance ratings in Central America is stable. The agency believes that there is a limited probability of rating adjustments in the next 12 to 18 months, which could lead to significant changes in the risk profile or the weighted support in some cases.
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.
Income from insurance premiums grew by 15% compared to the same month in 2015, reaching $924 million.
From the Monthly Bulletin by the Superintendent of Insurance:
Income from insurance premiums grew by 15% compared to September 2015, reaching ¢497 billion colones.Growth remains widespread by category and personal insurance is still the most dynamic category.The contribution of compulsory insurance, as explained in previous bulletins, responds to the increase in SOA in January 2016 due to accounting changes because RT premiums decreased by 20% year on year.
The insurance company founded on Chilean and Venezuelan capital had been subject of an intervention by the Superintendency of Insurance and Reinsurance of Panama in September, after it was detected that there was insufficient equity.
Prensa.com reports that "...This is thesecond liquidation made by the regulator in a year.In October 2015, theSuperintendent also ordered the same to be doneto Seguros Constitución, also of Venezuelan capital, after financial and administrative breaches were detected."