Low Penetration of Insurance in Panama Creates Opportunities
|By Lee McDonald|
|A.M. Best Company, Inc.|
In the past five years,
Q. Many in the Panamanian insurance community believe
That opened up the market in
Q. Where do you see
A. We’re regional. We utilize our resources the best we can. Our countries in
As an example,
Nevertheless, we must heed signs of warning on the influx of excess capacity to these markets as it proves to maintain unsustainable conditions for insurance and reinsurance premiums.
Q. How are insurance markets in
A. Personal relationships still play a big role in understanding how everything ties in. It’s market intelligence. It's much more than microeconomic figures. It's who is who and who is involved with whom. These are not financial groups. Another aspect which is quite interesting is the money that’s coming in. On the government side, there are millions of dollars coming in from foreign aid. We have the interest of the IFC (
Q. Can risks here be covered locally?
A. One issue is market size. Facultative business is what we mainly do but treaties are also a big part of the business in
Q. Are major reinsurers interested in your market?
A. What I’m seeing is a lot of slips out of
A. New regulation creates an administrative unit within insurance companies in charge of taking care of claims and differences with insurance consumers. The superintendency is brought up to meet international norms of supervision; it grants the superintendency the facility to regulate the correct application of international norms of financial information for reserves and investments of insurance and reinsurance companies. There is also an obligatory registry in
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