In 2016 subscriptions to insurance policies grew by only 0.5% compared to the previous year, which is below the growth rate of 3.4% recorded between 2014 and 2015.
The speed at which premiums are growing in the Panamanian insurance market has been declining since 2013. Between 2012 and 2013, registered growth was 9.3%, followed by an increase of 7.9% between 2013 and 2014.
Figures from the General Comptroller show that in 2016 insurance premiums in the field of personal accident were the fastest growing category, with an increase of 41% compared to 2015. The were followed by health insurance policies and group life policies, each with increases of 10%.
In total the value of premiums written in the year was $1.396 billion, while in 2015 the total was $1.388 billion.
See statistics by the SSF.
Hi Tom,
Coincidentally, my medical insurance with Ancon was just raised effective February 24th, going from $195.91 to $250.15
This is an increase of 27.7% and it’s indicative of Panama’s cost of living accelerating ever more quickly.
I just got back from Price Smart a few hours ago, and two coaches set me back almost 800 bucks. I could have made the same trip to Walmart for much less.
My Panamanian wife always laments our decision not to stay in the United States when we lived there for a few months back in 2012. I explained to her that Panama was still cheaper to live. But with the cost of medical insurance and food rising so fast, I’m reconsidering my options.
At a minimum, we’ll keep our home in El Valle. But I saw a lovely house in the Palm Coast, Florida online the other day, for the modest price of $250,000. It is much nicer than the place we have here in Panama City, which is valued at twice that amount.
I like Panama as much as the next fellow; but with the salaries here zooming ever higher, it’s becoming a challenge to justify staying aboard.
I’ve been here since 2004, and the changes in the cost of living have been dramatic–to say the least. To put things in perspective, my health insurance back then (same policy with Ancon) was just over $50. I’ve seen a 400% increase in my rates since then. If the rate hikes continue on this same track, in 12 more years my health insurance will be $2,000 a month!
Maybe in the Interior you have it better with day to day purchases, and especially in the service sector. I know those items are still less expensive in El Valle–as opposed to Panama City.
Anyway, thanks for the input on the insurance sector. It couldn’t have come at a better time, as it allows me to balance out my argument against Ancon’s price increase when I pay them a visit this coming Thursday in order to contest their rate hike.
Best regards,
Marc