When we work with foreigners who come to invest, relocate or visit Costa Rica for extended periods of time, they always ask about the possibilities of obtaining an insurance policy or creating an insurance policy that suits their needs. To this question, as advisors, we must inform them that the Costa Rican insurance market is quite limited, it is not sophisticated enough to include certain types of insurances and may be restricted in terms of product offerings to meet specific needs. We will develop a few lines to explain how the Costa Rican insurance market is conformed and how it functions.

Until 2008, the Costa Rican insurance market was a state monopoly, the only insurance company operating in the market was the Instituto Nacional de Seguros (National Insurance Institute), belonging to the government. There were no other private operators, and everything had to be processed and carried out by this entity, which due to the lack of competition, did not offer a robust proposal in terms of service and products.

In 2008, Costa Rica opened its doors to the insurance industry, making a step forward in its development. Since then, the market has experienced significant progress, moving from a single state-owned company and a limited range of insurance products to the presence of twelve insurers with more than 450 products to offer. While this number may seem large, it is not compared to product offerings in developed markets. This change has been vital to ensure personal, family and business wellbeing in the country.

Costa Rica has established a solid regulatory framework through the Insurance Market Regulatory Law, No. 8653. The National Council of Supervision of the Financial System (El Consejo Nacional de Supervisión del Sistema Financiero, CONASSIF), as the regulator entity, guarantees the correct application of regulations and the technical and professional training of employers. The creation of the Superintendencia General de Seguros (SUGESE) extended supervision, with the purpose of positioning Costa Rica as an international reference in the insurance field.

The “Superintendencia General de Seguros” (SUGESE) is in charge to guard the Costa Rican insurance market. Its mission is to ensure stability and transparent operation, as well as to provide complete information to ensure people. It also authorizes, regulates, and supervises all entities and persons involved in the insurance business.

The evolution of this sector has given way to new participants, among these stand out:

• Insurance Broker: It is a natural person who as intermediary can market products of all insurance companies.
• Insurance Brokerage Company: It is a legal entity dedicated to intermediation, acting by themselves and on behalf of its clients. It is exercised through brokers previously accredited by the Superintendency.

There are variety of insurances for the needs, among the most common are:

• Insurance for Medical Expenses: Guarantees medical assistance and covers daily needs, providing constant security and protection.
• Life Insurance: Focused on the family’s future, it provides economic and emotional support in difficult times, as well as covering daily medical needs.
• Homeowner’s Insurance: Financially protects the home against risks such as lightning, floods, fires, etc., as well as insuring the household goods and the different areas of the home.
• Automobile Insurance: Compensates damages to third parties and to the insured vehicle in case of an accident.

Some of the insurance companies that stand out in the Costa Rican market are the following:

• Instituto Nacional de Seguros (INS)
• Oceánica de Seguros
• Pan-American Life Insurance
• Assa Insurance Company
• MAPFRE Insurance

Costa Rica has charted an upward trajectory in insurance. With strong regulations, a variety of products and leading insurers that offer more and more opportunities for foreigners and Costa Ricans.

Quatro Legal maintains relationships with different insurers and is your best option for simplify the complexity of the process of contracting an insurance policy, clear uncertainties and guide every step of the way in the insurance market. If you require an insurance policy, our Compliance Department will be happy to assist you and manage your insurance policies.

For more information write to MICHELLE MUSSIO at mmc@quatro.legal

Disclaimer: The information provided in this blog post is for general informational purposes only and is not intended to constitute legal advice. While we strive to ensure the accuracy and timeliness of the content, laws and regulations are subject to change. For the most accurate and up-to-date information, please contact our office directly. Some images may be AI generated.