The Superintendent of Insurance is preparing a bill to promote market development by encouraging the installation of foreign reinsurance companies in the country.
The bill, still in draft form, aims to attract major reinsurance companies to the country and use the market already operating in the country as a platform.
The National Insurance Institute (Instituto Nacional de Seguros) has established a technical standard on the conditions which companies must meet in relation to occupational insurance for their staff.
The National Insurance Institute of Costa Rica has ruled on the provisions of the Labour Code to ensure the provision of cash benefits, medical and health benefits and rehabilitation, as well as the financial strength of the regime.
The National Assembly of Panama approved bill 360 on its third reading, which regulates the activities of insurers.
Among other provisions, the law establishes requirements and deposits in order to set up as an insurance company, creates an insurance supervisory board, and establishes a tax regime for insurers.
According to the superintendent of insurance, Luis Della Togna, the industry has been clamouring for this law for over 10 years, reported Prensa.com.
The passing of the bill – which has already been agreed upon - would allow the development of the micro-insurance market and new distribution channels.
The passing of the bill – which has already been agreed upon - would allow the development of the micro-insurance market and new distribution channels.
The increase can be explained by changes in accounting practices generated by the application of the law on Insurance Activity .
The enforcement of the law earlier this year has had a significant impact on premiums collected by insurance companies in the country.
Between January and September, the company received $447 million in net premiums directly, whereas in the same period last year this figure was $357 million.
The annual supervision and regulation rate will increase from $2500 to $50 000 for insurance companies and $75 000 for reinsurers.
The new insurance and reinsurance law brings with it several changes, among which is an increase in the rate charged by the Superintendency for overseeing businesses that offer insurance in the country.
A new insurance law which is under discussion in the Legislative Assembly provides for the creation of a Consumer Ombudsman's Office for Insurance.
This unit, within the Superintendency for Insurance, is responsible for representing insurance consumers from the public, creating guidelines for protection and providing legal representation when necessary.
As published in the Official Gazette, Law No. 8956 Regulating the Insurance Contract is applicable on policies taken out from today.
Among the new features of the new, approved by the Legislative Assembly on 2 June, are the updates of what is considered insurable interest, the minimum amount of fees, definition and general aspects of the premiums.
"With this new legislation, a classification of insurance type (damage, fire, transportation, liability, etc.) has been established and conditions defined for life insurance" writes Sergio Morales writes in his article in Elfinancierocr.com
The new law regarding the regulation of insurance contracts (Ley Reguladora del Contrato de Seguros) regulates policy contracts and establishes rights and obligations for insurers and consumers.
"Among the new features of this law are the updates of what is considered insurable interest, the minimum amount of contributions, definitions and general aspects of the premiums", reported Sergio Morales Chavarria in his article in Elfinancierocr.com.
Rules to be complied with in order to become an Insurance Broker have been set.
Javier Cascante, director of the Insurance Superintendence , said the new provisions allow the transformation of an insurance agency into an insurance brokerage firm will be more agile and expeditious.
The Insurance Superintendent added to newspaper La Nacion, "a broker is in the business of risk consulting, agencies are exclusive distribution channels."
The country's new insurance law restricts which products agents can sell but the restrictions do not apply to brokers.
Insurance agents, due to their contractual relationship with insurance companies, can only offer their products. However, they may do this with different insurers at the same time, provided that these companies' products belong to different categories.
Congress has approved a new insurance law that will open up the national insurance market to foreign companies.
Decree number 25-2010 will come into force in January 2011 and redefines which classes of insurance brokerage are legal and what kinds of policies can be sold.
The banking regulator, Edgar Barquín, told Elperiodico.com.gt that, “the approval of the law is in line with the terms established in the free trade agreement with the USA”.
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