Fitch: CenAm insurance penetration still very low

Insurance penetration in Central America is currently very low and premium volume in relation to GDP is about 2%, Fitch Ratings said in a report. The insurance market's growth in the region is limited by the lack of an insurance culture, a low-income population and illegal sales of policies, especially in the life segment, according to Fitch. Central America's premium volume grew 8% to US$1.63bn in 2005 compared to the previous year, mainly due to the strong performance of the countries' economies, the development of mass distribution channels and marketing campaigns, the report said. Last year the four largest markets in the region in terms of premiums were Panama, Guatemala, El Salvador and Costa Rica, the report said. To read Fitch's full report in Spanish, go to this link