Costa Rican insurance industry gross written premium grew at
a review-period (2013–2017) CAGR (compound annual growth rate) of 9.7%. This
growth was backed by economic growth due to the presence of strong export
demand and an influx of foreign direct investment (FDI), a favorable regulatory
framework, and a rise in life expectancy and the working-age population.
Costa Rica allows 100% FDI in insurance; coupled with the presence of a favorable regulatory framework, economic growth, growth of compulsory insurance classes, and increases in life expectancy and frequent natural hazards, this will support the insurance industry to grow at a forecast-period (2017–2022) CAGR of 7.0%. The general insurance segment accounted for 85.2% of the industry’s gross written premium in 2017, followed by life insurance with 14.8%.
Life insurance in Costa Rica grew at a review-period CAGR of 12.4%. This was supported by the rise in the aging population and high life expectancy, which has generated demand for life and annuity products. This, coupled with the presence of violent crimes such as armed robbery and homicide, will drive demand for life insurance over the forecast period.