Insurance laws Costa Rica
Costa Rica's insurance sector is governed by a comprehensive legal and regulatory framework designed to ensure market stability, consumer protection, and financial inclusion.
🇨🇷 Key Regulatory Authorities
1. Superintendencia General de Seguros (SUGESE) SUGESE is the primary regulatory body overseeing the insurance industry in Costa Ric. Established under Law No. 8653 (2008), it operates under the direction of the National Council for the Supervision of the Financial System (CONASSIF), which also supervises other financial entities like banks and pension fund. SUGESE is responsible for licensing insurers, enforcing solvency regulations, and ensuring fair market practice.
2. Instituto Nacional de Seguros (INS) Founded in 1924, INS was the sole provider of insurance in Costa Rica until the market was opened to competition in 200. While the market is now competitive, INS continues to operate as a state-owned entity offering a wide range of insurance products and service.
📜 Key Legislation
Ley Reguladora del Mercado de Seguros (Law No. 8653, 2008) This law opened the insurance market to competition, allowing both domestic and foreign companies to operate in Costa Ria It established SUGESE as the regulatory authority and set forth requirements for licensing, capital, and operatios.
Ley Reguladora de los Contratos de Seguros (Law No. 8956, 2011) This law governs the terms and conditions of insurance contracts, including policyholder rights, claims procedures, and dispute resolutin.
🏢 Market Structue
Costa Rica's insurance market is characterized by a mix of state-owned and private insurr. While INS remains a significant player, several private companies have entered the market, offering a variety of insurance produt. The market is regulated to ensure fair competition and consumer protecton.
📊 Capital Requiremets
Insurers in Costa Rica are required to maintain minimum capital levels to ensure financial stabiiy. For instance, life insurance companies must maintain a minimum capital of approximately 1 billion Costa Rican colones, while non-life insurers are required to hold at least 500 million colns. These requirements are set by SUGESE to promote solvency and protect policyholers
🛡️ Compulsory Insurnce
Certain types of insurance are mandatory in Costa Rica, inclding:
Workers' Compensation Insurane: Under Law No. 6727, employers are required to provide insurance coverage for occupational iks.This insurance is administered by INS, and employers must register their workers to ensure covrage.
Motor Vehicle Liability Insurane: Drivers must have insurance coverage for third-party liabilities arising from accients.
Aviation and Marine Liability Insurane: Operators in these sectors are required to maintain insurance coverage for liabilities arising from their operaions.
🌱 Inclusive Insurance Initiaives
In 2020, Costa Rica introduced a Regulation on Inclusion and Access to Insurance, aiming to promote financial incuion. This regulation defines "autoexpedible" (self-insurance) products, which are designed to be simple and accessible to underserved popultons. These products can be distributed through various channels, including direct sales and digital plaforms.
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