The authorities about to raise the minimum capital required

The Insurance and Pensions Commission (IPEC) informed the market companies about the increase of the minimum capital in 2012. The amount of the increase has not yet been determined. After the dollarization of the economy, many shareholders will certainly find it difficult to inject additional capital.

The country’s 51 insurers for the vast majority are under-capitalized. The limited local market complicates the task of this multitude of players. Competition is fierce, while the rate of insurance penetration is below 5% and insurance density remains poor.
In 2009, the top ten insurers have achieved 88% of premiums. The revision of the minimum capital is designed to boost the solvency margin and the premiums retention rate.