MEXICO CITY–(BUSINESS WIRE)–AM Best has revised its market segment outlook to stable from negative for Costa Rica insurance industry, citing growth in premium volume and the country’s economic recovery.
In its Best’s Market Segment Report, “Market Segment Report: Costa Rica Insurance,” AM Best also notes contained loss ratios in its non-life market segment and a stable regulatory environment. As of December 2021, Costa Rica’s insurance market registered year-over-year premium growth of 6.9% to CRC 900 billion, due primarily to the recovery of its economic conditions caused by the COVID-19 pandemic. At July 2022, year-over-year growth has ballooned to 14.4%, aided by a loosening of restrictions imposed during the pandemic that led to sustained growth in compulsory auto insurance and occupational injury insurance.
At the same time, the economy is recovering from the first effects of the pandemic, and in 2021, real GDP grew by 7.6%. “Growth is expected to continue, albeit hindered by obstacles, including rising commodity prices and supply chain disruptions due to a volatile economic environment,” said Olga Rubo, senior financial analyst.
AM Best expects Costa Rica’s insurance market to withstand its current challenges. Nevertheless, the residual effects of the pandemic, the volatile economic environment and uncertainty about public finances will continue to strain the country insurance industry. AM Best will continue to monitor the economic, political and regulatory landscapes, and the impact on the country’s insurance segment.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=324883.
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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Contacts
Olga Rubo, FRM
Senior Financial Analyst
+52 55 1102 2720, ext. 134
olga.rubo@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Al Slavin
Communications Specialist
+1 908 439 2200, ext. 5098
al.slavin@ambest.com
