Costa Rica finished 2008 as the largest insurance market in Central America, the only record in the first half net premiums of $ 290 million.

Costa Rica: The Costa Rican insurance market is the largest in Central America and this year also registered the highest growth with respect to June 2007 (25%). It is expected that the opening of the sector will translate into a market with greater choice of products, efficiency and transparency, while improving the regulation and supervision.

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Honduras: The premium sector grew by 16.3% the second highest growth rate recorded in the region, just behind Costa Rica. The increased penetration of insurance through massive non-traditional channels encouraged the growth of the sector. Due to lower economic growth, it is possible that this trend will moderate next year.

El Salvador: El Salvador in the insurance sector 80% of the premiums is in the hands of international conglomerates, which has introduced an element of stability and strength. Expected volume growth of approximately 13% premium because of the increased production of certain people and taking into account the strong seasonality of subscription in the last quarter.

Guatemala: Guatemala insurance sector recorded operating profitability. Output growth in premiums was 8.8% (but remained virtually stable in real terms), resulting in large measure the growth and dynamism in the marketing of insurance-related portfolio of banks, mostly in loans to finance cars.

Nicaragua: Still the market lower aficiencia in the region. The total operating expenditure in the sector increased from 48.0% of premiums earned in June 2007 to 45.4% in June 2008, well above the 29.1% average in the region. Net premiums in the sector grew by 14% compared to 2007.

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