Costa Rica insurance coverage spiked after state monopoly's end

The number of people insured in Costa Rica grew 32% at end-2013 from 2010, when the insurance sector was opened up to competition.

A total of 2.1mn policies were sold in 2013, up 9% from 2010, when brokers began entering the market following eight decades of a state monopoly run by insurance institute INS, said local newspaper La Nación, citing data from insurance regulator Sugese.

Life insurance offerings recorded the most dramatic increase, with 466,054 sold last year compared to 260,767 in 2010, a 78.7% increase.

Since the sector's overhaul, Costa Ricans can choose among 12 authorized insurers offering 213 personal insurance plans and 273 P&C plans.

The country's average insurance spending per capita rose to US$222 in 2013 from US$163 in 2010, but falls short of the US$240 regional average.

Costa Rica's insurance market represents 2% of its GDP, while insurance premiums in 1Q14 totaled 171bn colones (US$309mn), with INS accounting for 87%.