International conglomerates will arrive in the country in 2009 to open new niches that were not covered during the monopoly

• INS woild ally with foreign insurers and financial entities to face competition
• Personal mainly life annuity accounts, to disease and accidents were the products come to market for new entrants in the country.

The breaking of a monopoly to 84 years old again appealing the insurance market to international conglomerates and several of them and suitcases ready for his arrival in Costa Rica.

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So far four foreign companies and one national capital would be willing to compete with the National Insurance Institute (INS) mainly in niches in which this entity has remained on the sidelines. Global international insurers, ASSA Insurance Company, International Insurance Company (all in Panama) and Mexico Quilitas have openly expressed their interest to reach the country.

ASSA and even entered his corporation and the respective logos before the Public Registry, so its formal establishment in the country is a matter of days. In addition, a company of national capital, which has not yet transcended the name, made its formal application for admission to the Superintendent of Insurance (Sugese).

Although the exact time for the arrival of these companies is uncertain, it is a fact that all seek to give priority to its offer in niches in which the Institute maintains little presence. The personal insurance, where there is a gap in life insurance, annuities and insurance account for illness and accidents, are some of the most enticing to new players.

Although now known by the interest of five insurers, the amount of consultations before Sugese suggests that the number could rise to what seems a very good market. Costa Rica finished the first half of 2008 remains the largest insurance market in Central America, the record premium of $ 290 million, according to a study by Fitch Ratings.

"Insurers that have shown interest many, but only a national capital was formally made. But not only are companies that are operating in the region, been outside the continent, there is a European capital interest and we hope that those arriving in January, "said Thomas Solely, mayor of Insurance.

However, the amount of paperwork they have to meet businesses and 3 million units of development (just over $ 3 million) to invest a minimum capital to start operations in the country are delaying its adoption, said Solely.

Before the announcement of breaking the monopoly and the imminent arrival of new insurers to the market, the INS seeks to counter its competitors with the addition of new policies and efficiency in their operations, said Guillermo Constenla, executive president of the institution.

It has launched a massive series of insurance to get a majority of the population. You can mention the fire, called "Your Life" and the dollar credit. Similarly, this month will release a policy for funeral expenses and divorces. However, as part of maneuvers to counter his opponents, the organization seeks alliances with international insurance and financial entities to face competition.

"Since last year we have been negotiating with two insurers of the possibility of international alliances has not been easy because they usually want the most important part of the pie. We believe that the two companies are interesting to come to compete, then decide an alliance. The names of the companies could not be said for the moment because it's confidential," said Constenla.

Additionally, in early December, the Institute undertook a partnership with HSBC Bank, for this band in its insurance subsidiaries INS also exists the possibility to expand the contract to Central America, where the financial institution maintains operations. INS provides a difficult year 2009, since the arrival of the insurance market be reduced, however, that the institution intends to grow by 20% at best.

"We got an ambitious goal, we want to grow 20%, but we know it will be difficult in any case a growth of 2% would be very good for our goals," concluded the executive president of the INS.

Imminent arrival

With the opening of the insurance market, the entry of new competitors is a matter of days. So far five companies have announced their arrival:

Grupo Mundial: its incursion would live was in the first half of 2009. The group comprises a cluster of financial firms, among which is the insurance marketer Circle Total Protection, which operates in Costa Rica with INS policies. The country is interested in signing the offer life insurance, health and corporate. The region has operations in Guatemala, Honduras, El Salvador and Nicaragua.

ASSA Insurance Company: the insurer and the corporation registered with the Public Registry, however, remained cautious and preferred date and no further details of its plans in the local market. Enter the country with life insurance, and export industry.

Compañía Internacional de Seguros (International Insurance Company): remains cautious and prefer not to date and further details of its plans in the local market. Given entry into the domestic market, the company marketed life insurance policies with dollar savings plans for the client. He also believes that there is business potential in covering fire.

Qualitas: Mexican insurer came to the country in the medium term. This firm specializes in planning and coverage in the area of automobiles and trucks. The company is owned by The Bank of Nova Scotia, through its subsidiary Scotia Insurance (Barbados) Limited and Qualitas Insurance Company.

Source: La Republica
Written by: Natasha Cambronero
Wednesday, January 7th, 2009