Costa Rica News – INS has had a monopoly on providing insurance policies in Costa Rica for a long time but they are receiving more and more competition in this market sector. As is the case with most government run entities customer service is quite lacking so people are looking elsewhere.
This was evidenced by the statistics of the Superintendent of Insurance (Sugese) which has obtained this data last December. The National Insurance Institute (INS) is left with a 86% market share and the remaining 14% divided among eight firms.
The real growth in this segment was 26%. Competition grew 9% which until last year operated as a monopoly of the INS.
Growth was driven by new placements in the INS and the expansion of its competitors.
Outstanding growth policies was no surprise to market participants who believe that was a segment was boosted by the arrival of private companies to the country.
Personal saw a niche that was natural growth because INS participation and customer service was low.
Firms with greater market share are Pan American Life, Adisa, the Magisterium and Mapfre Seguros. Together they have grown without taking much business from the INS.
“We are in a process of rapid growth and the market is getting bigger, “said Alfredo Ramirez, manager of Pan American.
“There is much to be done, the insurance culture is being developed and this has allowed the INS to grow and, in turn, companies have also come to compete for market share, without detriment to our billing, ” said the INS.
Lets hope that this shows Costa Rica that competition can actually result growth as well as competitive prices and better service for the consumers.