Strong demand for insurance of car, house, health and alternative insurances across Panama are driving the financial gain of insurance firms in the country. Tax incentives on insurance products, positive savings related to insurance are further encouraging the clients across insurance. That is why local market players in Panama are focusing on marketing their competitive edge by rolling out more plans customized to diverse sectors and developing more innovative digital options.
However, also Panama’s insurance industry is facing stiff competition because the insurance firms not only contest with one another also compete with the risk retention groups, government, and self-insurance. The firms usually compete based on two factors including the quality of the services and price that they provide. Most of the large organizations self-insure for many of their employee benefits like health coverage that lowers market scope for insurance firms.
In another way, economic growth, rising government spending, technological innovations and increased consumer awareness about insurance products are key market drivers in Panama. The government’s policy of insuring the uninsured has progressively pushed the insurance penetration in Panama and the proliferation of insurance schemes.
Through totally different distribution channels, insurance firms in Panama are providing a wide variety of products with varying levels of complexity that are designed for different groups of businesses, individuals and other alternative organizations. This will provide ways to meet the emerging demands of every end-user customer and propel net sales.
Also, Panama Insurance Market is compared against five of its competitive markets in the region to analyze the role of Panama on the regional front and benchmark its operations. These are Global Insurance, Asia Pacific, Europe, Middle East Africa, North America, and South & Central America Insurance. For Panama, which has a population of 4,099 million according to 2017 data, such a competitive environment can become a good opportunity to be evaluated in the field of insurance.