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.
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.
During the first five months of 2013 $97 million worth was sold, predominantly in the categories of car insurance, health and group life policies.
According to Carlos Berguido, director of the Panamanian Association of Insurers (Apadea), the increase is attributed to the immediate responses to claims by owners of insurers, resulting in consumers acquiring more policies, because of the trust inspired by claims being paid quickly.