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.
According to Costa Rica officials, Alico will have four months to submit their qualifications that they have the necessary for the technology and marketing part of the business, among other red tape stuff.
Alico has also make steps to negotiate an alliance with the National Insurance Institute (INS) to promote a line of life insurance and medical costs, an approach that at this writing has not been to productive.
However, Alico is not the only player that want some of Costa Rica’s insurance business, World Insurance Company holds a provisional license and has until November 2009 to submit its plans. Both companies with a ton of foreign capital may soon compete in the country.
Before buying insurance in Costa Rica, there are a few important things you should know:
- The value of the items being insured is determined by the applicant, using Actual Cash Value (depreciated value). Up until now, INS did not have appraisers, but this may change.
- Insured values and premiums are in Colones, not in dollars. So be careful, because of Costa Rica’s has experience an annual 16-18% currency devaluation against the US dollar, it is best to periodically revise your policy.
- In the past All policies have deductibles which in most cases were fixed by INS. There are few policy options. Deductibles average 20% per claim on most policies.
- Insurance binders do not exist; formal applications have to be completed and signed, and in most cases the item must be inspected and the total premium paid before insurance becomes effective.
Speak Your Mind