Insurance
From The Report: Panama 2015
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In global terms Panama ranks as a small but dynamic national market for insurers. According to the Superintendency of Insurance and Reinsurance of Panama, general insurers wrote gross premiums of $791m in 2014, 6.2% more than in 2013, while life/health insurers wrote gross premiums of $552m, up 10.8%. Total insurance penetration was 3.07% that same year, with total density at $342 per capita. Though these figures are high in the context of Central America, where penetration varies from a low of 1.2% per capita in Guatemala to 2.2% in El Salvador, they remain low by the standards of OECD member states such as Chile (with penetration of 4.2% of GDP and density of $678 per capita), Spain (5.6% and $1591), Portugal (6% and $1716) and the US (11.6% and $5499). With significant room for organic growth, the micro-insurance, health insurance and life insurance markets continue to offer the best opportunities.

This chapter contains an interview with Mauricio de la Guardia, CEO, Internacional de Seguros.

Articles from this Chapter

Interview

Mauricio de la Guardia, CEO, Internacional de Seguros: Interview
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Interview:Mauricio de la Guardia How much consolidation can be expected in the short-to-medium term, and what is the impetus for recent merger and acquisition activity? MAURICIO DE LA GUARDIA: There are currently 32 players in the market, so competition is high. That said, three companies dominate the market and account for the vast majority of the industry’s profits. Most of the remaining companies are suffering from losses, leading to several consolidations in health and automobile insurance.…

Analysis

In search of profits: Profitability has taken a hit due to soaring claims costs
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In terms of premiums, the country’s insurance sector has been growing consistently since 2009. However, by some measures, profitability has been falling. According to Panama’s insurance trade association, Asociación Panameña de Aseguradores (APADEA), technical profits (i.e., the earnings from underwriting of risks) totalled $13.5m in 2013, while in the first nine months of 2014 they were $8.4m. Given the rise in gross written premiums, the technical margin (technical profits as a percentage…