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
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.
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.
Total premiums grew by 11% during 2013 and amount to $1.046 billion, the highest figure since the market opened in 2008.
During 2013, the total insurance market grew by 11% and total premiums added up to $1.046 billion, while in 2008 the figure was $611 million. Life policies and motor were the most popular during 2013.