Insurance Industry Growth In 2012
A report by Fitch Central America revealed that at the end of 2011, the American insurance industry, shows a growth rate close to 7%, so that the premiums for the insurance sector in the region amount to $ 3,275 million.
It also notes that Panama would only exhibit the highest level (3.5%), in line with the significant economic expansion in that country, despite the penetration of the various sectors in GDP would remain below that recorded in other Latin American countries (less than 5%), where.
It also was learned that Fitch expects that the next period, the insurance in Central America present a conservative growth, in turn aligned with modest economic growth estimated by the agency in most countries of the region. However, it is estimated to maintain a stable outlook on the financial performance of the various sectors.
Fitch believes that the insurance penetration in the region will grow to the extent that insurance companies achieve innovation in products and expand choices and acquisition cost.
The good performance of the region is enhanced, particularly by sustaining reasonable levels of claims, which also operating margins before considering the contribution of financial performance and other miscellaneous income remain positive, except for Costa Rica .
Currently, the countries of the region have already adopted new security laws are still in the Panama project. This is viewed positively by Fitch, which will be the progressive adjustment of the regulatory framework to international practices in terms of solvency margin calculations, booking, and corporate governance guidelines, among others, allowing the general strengthening of the financial profile insurance companies, and hence credit quality.
However, the agency believes that the insurance in the region should take into account the implementation of adequate systems of risk identification and measurement.