INS tells their Insurance brokers there would be “consequences” if they sold any other company’s products.
Every Costa Rican knows [since they can remember] the government monopoly of, oil/gas, electric, internet, and insurance has been one big headache after another. In Oct, 2007 when Costa Rica’s Free Trade Agreements (FTA) were signed, it looked like for the first time Costa Rican’s were going to get a break, when foreign companies could compete with government companies, especially for insurance. Ticos, for the first time would be able to pick a company based on service, care, quality, and cost.
Over a year later it looked like FTA was not working, then Canada’s American Life Insurance Company (ALICO) and a few others had received approval to sell in Costa Rica.
But has it happened? Well not quite as expected.
One of the first signs it was under undergoing, “Rules of Engagement” was with the new requirements for foreign residents (expats or permanent residents), who had to show proof of medical insurance to the government Caja, Costarricense de Seguro Social, which forced Expats scrambling for coverage from Instituto Nacional de Seguros, (INS), and/or Caja Costarricense de Seguro Social, (CCSS), which is government’s socialized medicine. Very few got coverage from foreign companies. Read more... (633 words, 2 images, estimated 2:32 mins reading time)
INS Costa Rica's only insurance company may now have some competitors
It seems that CAFTA may be working … for over 50 years, American Life Insurance Company has been dedicated to working families in Canada and the US won conditional approval this week to sell insurance in Costa Rica.
This company will operate under the name of Alico Costa Rica and the license is requested for the sale of policies in the category of personal insurance, including life, annuities, accident and health.
In the past Costa Rica has had only one monopoly insurance company, the INS (Instituto Nacional de Seguros – National Insurance Institute), a mixed public/private capital enterprise with majority government ownership. And until this time, only INS is allowed to sell insurance in Costa Rica. However, many (if they can) get offshore medical and other insurance policies that provide coverage in Costa Rica. A few of our accounts have insurances that will reimburse for medical expenses.
INS sells insurance directly at its many offices throughout the country, or you can purchase a policy directly from a registered agent. It will cost the same, but a responsible agent (not all are, so be careful) is preferable, as you will get advice and help with the red tape if, along the line, you have to file a claim. Read more... (473 words, 1 image, estimated 1:54 mins reading time)
A white-haired Oswaldo Villalobos discusses his situation with one of his lawyers. Photo from A.M. Costa Rica/José Pablo Ramírez Vindas
One of the things the Free-Trade Agreement opened up was lawsuits. Somehow, you knew the attorneys also had to take advantage of this Free Trade thing. Canadian investors have sued the government of Costa Rica.
If you are new to Costa Rica, starting back in the mid 1990s just about every Costa Rican knew of the Villalobo Brother’s high-interest borrowing operation or just a good old fashion, ponzi scheme that targeted business owners, individuals, and operators of tourism hotels. The Villalobos operation paid up to 3.5 percent a month on deposits of $10,000 or more. Some put in millions. Finally, in late 1990s the judicial department started to investigate before the conviction and sentencing of one of the brothers, Oswaldo who got 18 years. The other, Luis Enrique Villalobos Camacho, fled the country and still is a fugitive, convicted of fraud and illegal banking.
The investors are presenting their case before the International Centre for Settlement of Investment Disputes, a World Bank agency.
Read more... (495 words, 1 image, estimated 1:59 mins reading time)
Rodrigo Arias, Costa Rica's Minister of the Presidency, supports the Oil Refinery
Is China using its $1.8 trillion in foreign exchange reserves, the world’s largest such cache of foreign currency, to further its political and diplomatic goals, despite promises that it would not do so?
Are they using these reserves to win the support of the people, by first building the $84 million, new National Soccer Stadium in Parque La Sabana for the Costa Rica Sports and Recreation Institute (ICODERA)? And gain support from the economy-trouble government by again using its muscle when it agreed to buy $300 million of Costa Rican bonds as they did with the US in their one trillion dollar bond buying?
Even if the global economy seems to be grinding to a halt, investment from China continues to pour into Costa Rica. In the last six months China has given over $300 million in aid to Costa Rica, as well as other incentives, including 20 scholarships each year for Costa Ricans to study in China. China first bought [in 2008], $150 million in state bonds, with a term of 12 years and carrying an interest rate of 2 percent per year and again in January, 2009, another $150 million in bonds Read more... (536 words, 1 image, estimated 2:09 mins reading time)
FTA, "Is it working?"
Back in Oct, 2007 Costa Rica (by a close vote (53/ 47) approved a free trade agreement (FTA) with the United States. The vote split the country, with supporters arguing it would bring economic development, and critics warning (mostly labor unions) that it would hurt the little guy, like farmers and small businesses.
This trade agreement was suppose to expand Costa Rica’s access to the US market and vise-versa. In other words attract US and other investments, and connect Costa Rica to some of the most dynamic economies of our Western hemisphere over a period of several years. Costa Rica government claimed by 2010, all doors would be open.
The Central American Free Trade Agreement (CAFTA) has become more divided, between the 10s of thousands of Costa Ricans’ that live in poverty, the lack of jobs for the young, and the current decline in the tourist industry, which accounts for millions of revenue for local businesses and government.
Unions and activists Protesting the FTA back in 2007
CAFTA supporters claimed in the beginning, “Accepting it would boost Costa Rica’s exports by half a billion dollars from the first year” Read more... (608 words, 2 images, estimated 2:26 mins reading time)
