INS Insurance Monopoly
At An End
With the signature of
Costa Rican president,
Oscar Arias, the
insurance monopoly held
by the Instituto
Nacional de Seguros
(INS), has ended,
allowing Costa Ricans to
make a choice once the
competition enters the
market.
President Arias, with
INS president, Guillermo
Constenla Umaña,
yesterday signed the "Ley
Reguladora del Mercado
de Seguros".
The law allows for the
creation of a "superintendencia"
(superintendent) of
insurance and the
strengthening of INS as
an insurance provider,
along with the
independence of the
Cuerpo de Bomberos (Fire
Department), among other
changes to the insurance
industry.
Once the law is
published in La Gaceta,
the insurance market
will be open to
competition.
Constenla said yesterday
that he welcomes
competition and that the
INS has been preparing
for some time for the
change and is in a
position to compete in a
free market. Constenla
added that he sees the
INS as a leader in the
insurance market once
the competition begins
to operate in Costa
Rica.
The role of the
Superintendencia, once
established, is to
oversee the competition
in a free market,
similar to the work of
the Consejo Nacional de
Supervisión del Sistema
Financiero (Conassif),
which oversees the
financial industry, and
provide consumers
security and confidence.
Along with the
Superintendencia will be
the creation of a
Defensor del asegurado
(an insurance Ombudsman)
that will protect
consumers.
The Ley Reguladora del
Mercado de Seguros
establishes the rules
and requirements of
foreign and national
insurers, for example,
the amount of capital
each insurer must have
to operate in Costa
Rica.
With the change the INS
will also be permitted
to operate outside of
Costa Rica, albeit
through alliances and
partnerships.
As to the Cuerpo de
Bomberos, it will have
the independence it has
wanted for some time, to
be able to administer
operations and finances
away from the apron
strings of the INS.
"The move from an
insurance monopoly to a
free market is an
experience of great
value for all Costa
Ricans, who will benefit
from the changes", said
Constenla. |
