In July 2008, the Insurance Market Regulation Law (LRMS) broke
the monopoly that existed in Costa Rica for more than 80 years,
which allowed only one state company to carry out the
country´s insurance operations. The LRMS also created a
supervisory authority in this matter, the Insurance
Superintendence, which supervises the newly-opened market. The
opening up of the market has allowed the participation of
several insurance companies, achieving product diversification
and interaction with several financial sectors, including the
This interaction of the banking and insurance sectors has
allowed both to achieve significant growth over recent years,
thanks to a wider variety of banking services. The insurance
market has taken advantage of the success of credit portfolios
managed by these banks.
The influence of the banking sector has increased as a
result of offering new services, and greater lending capacity.
At the same time, the growth of insurance activity within the
banking sector is down to the fact that the clients, through
bank credits, the use of credit cards and savings accounts, are
able to enter into lower-cost insurance contracts with
fractional premiums. This allows them to obtain cover for
simple risks related to certain banking operations, at the same
time as death risks linked to bank credits.
Therefore, the successful growth of these sectors is not
only based on an increased awareness of insurance issues in
Costa Rica, but also on the varied service selection that both
markets offer. The Costa Rican insurance consumer has become a
significant player in the financial market.