Insurers forecast US$276mn in premiums at year-end

The Dominican Republic's insurance market expects premiums totaling US$276mn at the end of this year with no substantial variation on the rate of accumulation as at end-October, Miguel Villaman, VP of the country's chamber for insurance and reinsurance companies, or Cadoar, told BNamericas. As of end-October, the insurance industry posted net premiums of US$218mn, up 23% compared US$177mn at the same time 2002. This percentage in premium growth will be maintained to the end of the year based on the repercussions felt throughout the industry following the departure of prominent local players that held a combined 40% stake in the local insurance market, Villaman said. Local insurers Segna and Intercontinental de Seguros, owned by banks Bancredito and Banco Intercontinental (BanInter), respectively, closed their doors this year due to financial woes and crises affecting their parent companies. As a result, the government plans to submit a bill in April 2004 targeted at increasing equity requirements and profitability levels for companies and requiring more independence between insurers and banks.