Best’s Market Segment Report: AM Best Maintains Stable Outlook on Costa Rica’s Insurance Industry

AM Best is maintaining its stable outlook on Costa Rica’s insurance industry due to premium growth and a steady regulatory environment.

According to the new Best’s Market Segment Report, “Market Segment Outlook: Costa Rica Insurance,” Costa Rica’s insurance market premium grew by 5.5% in 2023, due primarily to post-pandemic economic improvement. The market, which is dominated by Instituto Nacional de Seguros (INS), has grown 12.2% year over year as of October 2024. These increases have been driven mainly by increases in voluntary insurance take-up post-pandemic and growth in compulsory coverages.

Costa Rica boasts a well-established regulatory framework for insurance, and the government has implemented measures to enhance consumer protection, including mandatory auto insurance. “The regulator’s current focus is developing and marketing mass market products and creating a regulatory framework with capital restrictions similar to Solvency II,” said Olga Rubo, senior financial analyst, AM Best.

Although tourism was significantly affected by the pandemic, with rising levels of government debt, Costa Rica’s economy historically has been stable and continues to gain the confidence of the national and international markets. Further real GDP growth is expected in 2024 following a 5.1% increase in 2023, fueled by resurging foreign investment and ongoing domestic consumption.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=350404.

To view current Best’s Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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