Discounts in fitness centers, in dental services or in consultations with psychologists, are some of the benefits offered by insurance companies in Costa Rica to maintain their portfolio of clients and attract new ones.
The National Insurance Institute (INS), Sagicor, Pan American Life Insurance, Océanica de Seguros and Mapfre, are some of the competitors in the Costa Rican market that offer this type of privileges in their policies.
Ten years after the elimination of the insurance monopoly in Costa Rica, private insurers have managed to "steal" from the state company about 12% of the market.
Mapfre Seguros, Sagicor, Assa Compañía de Seguros and Best Meridian Insurance are some of the 12 private companies that have been competing in the Costa Rican insurance market since 2008, when the law came into force opening up the business which for more than 80 years was in the hands of a single company, Instituto Nacional de Seguros.
In Costa Rica insurance companies are seeking to increase sales of policies to SMEs and take advantage of a hitherto untapped market.
Small and medium enterprises (SMEs) represent 77% of businesses in the country, and therefore insurers are seeking to enter this market niche which has not been fully exploited. There are currently 5 companies that have focused on this market segment, but it is expected in 2015 one more will be added offering health insurance, and life insurance and workplace accident policies, among others.
The state run Nacional de Seguros and PanAmerican Life share 88% of the market in the segment of accident and health policies.
The segment for Accident and Health policies showed that up to March 2014 the majority market share was held by Instituto Nacional de Seguros (INS) with 46.4% and 41.7% was held by Pan American Life, according to the Superintendent of Insurance (SUGESE).
After five years of monopolization, there are 13 insurers, 17 brokers companies, 63 agency companies and 49 auto insurance operators competing in the Costa Rican insurance market.
Nacion.com reports: "Also noteworthy is the 442 products registered up to June this year, surpassing the 159 registered in the same month in 2010."
At the end of the first half of 2013, the Instituto Nacional de Seguros led the market with 89.7%, followed by Assa with 3.2% , Pan American Life with 2.9%, Mapfre with 1.6% and Adisa with 1.4%.
Pan American Life and Assa accumulate 6% of the market, reporting up to May 2013 accumulated income of $12 million.
According to the Superintendent of Insurance (SUG) these two companies have the largest reported income. "Other market participants with significant shareholdings are Mapfre Seguros with revenues of $7 million and Aseguradora del Istmo with $4.5 million," noted an article in Elfinancierocr.com.
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%).
Despite the entry of new insurers, in Costa Rica there are few options for insuring small appliances.
At the moment, only the National Insurance Institute of Costa Rica offers policies to insure this type of device, which has an annual cost of ¢15.000 colones ($30) and covers up to ¢500,000 ($1,000).
According to a survey by the newspaper La Nacion, "other companies such as Assa and Mapfre also give coverage, however, these are restricted because they are directed at electronic equipment of a larger size or because they are designed to insure various pieces of equipment and not just one."
Costa Rican insurers received 2120 claims after the earthquake on September 5, relating to damage to homes.
The National Insurance Institute (INS), Mapfre Seguros de Costa Rica and Assa Insurance Company are the three insurers in the country authorized to market this type of policy.
Most of the claims are being processed by the INS, with 1,012 homes and 1,040 for business premises, Mapfre and Assa have 40 and 25.
Despite the de-monopolization of the market four years ago, state institutions continue to obtain their insurance with the National Insurance Institute (INS).
An article in Nacion.com reports that "Although the Law Regulating the Insurance Market (LRMS) leaves open the possibility for public sector entities to buy private insurance policies, few enterprises have contracted their services."
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.
Insurance companies in the country are to have service departments for customer queries and complaints.
Those who hold some form of insurance policy will be able to access the specialized offices offering consumer rights through their current insurance companies, which will begin to implement this measure soon.
Insurance companies such as the National Insurance Institute (INS) believe it is preferable that customers go to them to initiate a consultation process rather than going to external lawyers and other institutions.
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