In Costa Rica, 4 years after the opening up of the sector, the 10 private insurance companies have a 9.8% market share.
The undisputed leader remains the Instituto Nacional de Seguros (INS), with a 90.2% market share and among the private companies the strongest are Mapfre and Assa with a 9.6% share between them.
According to the Superintendent of Insurance, the largest segment of the market is the general insurance category (51%), followed by sickness insurance (26%) and personal life policies (26%).
Two new companies sold 17% of this sector of the Costa Rican market.
Panamerican Life and Seguros de Alico are the main rivals of the National Insurance Institute (INS), with a share of 14% of the personal insurance policies sold in the Costa Rican market, while other private companies control 4%.
The INS still retains 83% of the market, reported Nacion.com.
In Costa Rica private insurers have come into the market, primarily selling life and car insurance, with customers seeing lower rates.
Although the National Institute of Insurance (INS) remains the undisputed market leader, private insurers are gradually gaining ground, particularly in the areas of auto and life policies.
The INS, an agency which has been in existence for 84 years, still controls 97% of the auto insurance market and 94% of life policies. In the former, in which $200 million worth of business was done in 2011, only Mapfre Seguros has taken a toll on the quasi-monopoly of the INS, taking 3% of the market, according to data released by Nacion.com.
In the newly privatised insurance market, companies are competing with the National Insurance Institute (INS in Spanish) to increase their portfolios.
Last June, according to the premium income figures, registered insurance lines and assets, INS was first, followed by Assa and Alico with its life and health insurance lines.
"Where Assa stands out is in general insurance, where in the first half of this year it accumulated almost $6.7 million in premiums paid, this amount was generated by 42 different products, especially those covering property damage", wrote Sergio Morales on Elfinancierocr.com.
Although competition in compulsory insurance opened up to private operators in January, the market still has only one supplier, the state run INS.
According to the Law Regulating the Insurance Market and CAFTA, from January 2011 the market has been open to competition for compulsory car insurance and occupational risk policies.
In the case of occupational risk policies, the Constitutional Court admitted an appeal of unconstitutionality, which has put a stop to licensing new products in this field, until sentencing is passed.
Three years after removal of the monopoly in Costa Rica, sales by private insurers are growing, although the state insurer, INS, still maintains more than 90% of market share.
Although the National Insurance Institute (INS) still retains most of the market, private insurers have gradually increased their presence.
Of eleven listed companies, seven reported sales in the first half of the year and most believe that conditions exist to continue increasing sales and consolidating their position in the market.
There are ever more alternatives for easy subscription insurance policies in the country.
The opening of the Costa Rican insurance market has not only increased the number of companies offering policies, it has also widened the range of products available to Costa Ricans.
One kind of insurance policy that has awakened a lot of local interest are the so-called "autoexpedible" products (literally "self-issued" - insurance that can be sold without a participating authorized insurance intermediary).
The Insurance Superintendence authorized new products by ASSA and Alico into the market.
Alico will sell Collective Life Insurance while ASSA is offering policies in dollars or colones, to protect movables or real estate against various risks.
As of now, Costa Rica private insurers are offering four different products to the population.
“The National Insurance Institute offers 142 products, while Magisterio 13”, reported Nacion.com.
In Costa Rica, “BCR Corredora de Seguros S.A.”, an insurance broker, landed brokerage agreements with two new insurers: Alico and Magisterio.
With the agreement, BCR becomes the first and only insurance brokerage to have agreements with three of the five insurers authorized to operate in the country.
Currently, BCR is authorized to commercialize various products from INS, Alico and Magisterio.
The Insurance Superintendence awarded the insurer the final approval to sell insurance in the country.
Alico will market personal, life and health insurance.
“In a brief statement, the company remarked that they have now become the first foreign insurer authorized to sell personal insurance in Costa Rica. The other two participants of this submarket are INS and ‘Seguros del Magisterio’”, reported Elfinancierocr.com.
Alico Costa Rica was authorized to operate in the country, becoming the second foreign capital insurer.
Backed by Chilean capital, the insurance company plans to sell individual insurance such as life, rents, accidents and health.
"It is the second foreign-capital insurer authorized to operate in the country by sector supervisor Supen. The first was Panamanian insurer Aseguradora Mundial S.A.", reported local newspaper Prensalibre.cr.
Local company "Seguros del Magisterio", and two panamanian corporations, "Mundial" and "Assa", are the first new players in the market.
Costa Rica's insurance market is the largest in Central America. This can be analyzed by comparing the assets of the state-owned National Insurance Institute of Costa Rica, with the other insurance companies of the region.
Beginning in June, Seguros del Magisterio SA (Teacher’s Insurance) will be the first competitor for the INS, offering eight personal insurance policies.
The new insurer, owned by the Teacher’s Life Insurance Society reported that transactions will begin no later than the second half of July, thus becoming the first competitor for the National Insurance Institute.
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