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.
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.
The Insurance Superintendence proposes rules for commercialization, accounting supervision and customer service.
Javier Cascante, Insurance Superintendent, said that the proposed Insurance Contracts Law seeks to give customers more confidence when purchasing policies.
The National Institute of Insurance of Costa Rica was not successful in formalizing an alliance with the businesses Alico and Pan-American Life to initiate a line of personal insurance.
Mercedes Agüero, in her article in Nacion.com, writes: "As a coalition of these companies, INS attempted to start a line of personal insurance, especially for life and medical expenses—an untapped niche market due to the 84-year state monopoly."
The National Insurance Institute has a portfolio of 17 new policies that they plan to offer via public and private banks in the country.
The offer includes products such as a family protection insurance, which in case of death provides income for food, housing, education and transportation of family members.
In the next 18 months the current Pension Superintendent, Javier Cascante, will be responsible for the opening of the market. He already has two laws and two set of regulations in his favor.
Steps are being taken with great fanfare, but the international situation is calling for cautious steps.
These will be the first guidelines that will be used to regulate the insurance market that up to now has been monopolized by the National Insurance Institute (INS).
The Connassif (the Financial Regulatory Body in Costa Rica) approved the regulations for insurance companies and will hold public consultations for ten days. Javier Cascante, Pension Superintendent, explained that the regulations establish the requirements for insurance companies, as mandated by the Insurance Superintendence, so that they can operate in the country. This includes legal, formal, accounting, administrative, and operational requirements.
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