Insurance

Following the heavy investment in infrastructure projects of the past few years, the insurance sector has enjoyed a prosperous period. The industry is estimated to be managing assets of around $1.9bn, of which investments comprise $1.3bn, or 70% of the total. As a result of Law 12 of 2012 a new legal framework was created to regulate the sector, bringing it more in line with international standards and offering consumer protection clauses for the first time in Panama. The economy’s recent positive performance has also attracted new insurance companies and reduced the market’s concentration. However, the end of infrastructure projects and uncertainties related to the Panama Canal’s expansion could slow down growth, while strong competition, higher-than average inflation and lower returns on investments are putting downward pressure on insurance companies’ profits. This chapter includes interviews with Dino Mon, Director, MAPFRE-Panama; and Gabriel de Obarrio, CEO, Generali Panama Branch.