An increase in the number of vehicles, rising prices for parts and road realignment works are factors in a higher number of claims, which has led to an increase in insurance sales.
In the first three months of 2012, premiums totaled $273.7 million, reported the Insurance and Reinsurance Superintendence of Panama (SSRP in Spanish), according to Laestrella.com.pa.
"By generating employment and increasing GDP per capita, access to finance is very easy, which leads to higher consumption – an increases in car-buying- ", argued the businessman Carlos Tribaldos , CEO of Óptima insurance company.
In 2011, 48,000 new units joined the fleet. On average for the next 5 years, an estimated 42,000 new units will do so annually, said Tribaldos.
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At the end of last year, 2011, the insurance market reported a growth of 9.6% compared with 2010.
According to the National Commission for Banking and Insurance (CNBS), growth in premiums was $28.7 million.
"According to the insurance industry, the only decrease, of 4%, was in the general insurance section which includes vehicle and fire policies, ..." reported the Laprensa.hn
Over the next four years it is expected that annual sales will average 42,000 vehicles, according to BBVA Research.
The prospects for the Panamanian automotive sector are positive considering the projected boom in income and economic activity. Over the next four years it is expected that annual sales will average 42,000 vehicles.
The amount of premiums written during the first half of 2014 totaled $657 million, which is 12% more than in the same period in 2013.
Of the total of premiums paid in the first six months of the year, health insurance, group life and car policies accounted for about 45%. In the case of auto insurance, one of the fastest growing in the country, the total was $112.4 million, 9.78% more than in the first half of 2013.
Projections for the insurance industry show growth of between 7 and 8% by the end of 2011.
Total net premiums will close at between $123 and $124 million, exceeding the $115 million recorded last year, said Luis Reynosa, of the Nicaraguan Association of Professional Insurance Agents, Anapsos.