MEXICO CITY, October 25, 2021--(BUSINESS WIRE)--AM Best has assigned a negative market segment outlook on Costa Rica’s insurance industry, owing to the COVID-19 pandemic, which has impacted economic activity and public finances.
The new Best’s Market Segment Report, titled, "Market Segment Outlook: Costa Rica Insurance," notes that as of December 2020, Costa Rica’s insurance market registered CRC 842 billion (USD 1.4 billion) in premiums, with year-over-year growth of 1.1%, slower than previous periods, primarily due to the economic conditions caused by the pandemic. Beginning July 2021, the market grew 9.2%, mainly driven by the recovery of the compulsory insurance occupational injury risk market, as well as sustained growth of the voluntary insurance business lines, despite a slowdown in the auto market.
Overall, the pandemic continues to challenge the economic environment. Tourism, one of the country’s main industries, has been affected significantly despite the lack of lockdowns common in the rest of Latin America. Additionally, central government debt reached nearly 70% of GDP in 2020, an all-time high. The uncertainty surrounding public finances will continue to strain Costa Rica’s insurance industry.
AM Best will continue to monitor the economic political, and regulatory landscape and the impact on Costa Rica’s insurance industry.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=313973.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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