(+44)203-287 0408

  office(at)bridgewest.eu

(+44)203-287 0408
office(at)bridgewest.eu
Company Formation Panama

CHECK COMPANY
NAME AVAILABILITY (Step 1)



Articles

Open a Panama Insurance Company

Updated on Monday 25th November 2019

Rate this article
5 5 1
based on 2 reviews


Open a Panama Insurance Company.jpgInvestors who wish to open a Panama insurance company must comply with the ongoing requirements and the laws regarding the licensing and the appointment of administrators, as well as the minimum requirements for these types of businesses.
 
Our Panama company formation agents describe the main issues that need to be taken into consideration when opening an insurance company. Understanding the regulations for licensed industries, such as banking and insurance, is important when doing business in Panama. Our team is ready to answer any additional questions and is able to provide complete services for the incorporation of companies, irrespective of the chosen business field.
 

What are the main conditions for insurance companies in Panama?

 
An insurance company in Panama is naturally required to comply with certain requirements, specific to a highly regulated business field. Prior approval from the main regulating agency is required in all cases and, in addition to mandatory licensing, business owners in this sector are also required to comply with a minimum paid capital requirements. 
 
The minimum paid capital of an insurance company in Panama is 5 million USD, and the insurer is also required to have a number of reserved, free of liens. 
 
The license for the insurance and that for the reinsurance company are obtained separately. Companies that wish to provide both services will need to apply for both licenses. More information on this topic is available upon request from our Panama company formation specialists.
 

What are the services provided by these types of companies in Panama?

 
There are several types of insurance covered by licensed insurance companies in Panama, as seen below:
 
  • General reinsurance: offers financial compensation for any type of loss, not including death. 
  • Health insurance: covering hospitalization, the treatment of critical illness, maternity cover, accident cover, and others.
  • Life insurance: offers compensation in case of death or disability; in certain cases, it can also include retirement policies. 
  • Home insurance: compensations for the damages to real estate due to natural calamities, man-made disasters, accidents and others.
  • Motor insurance: car and motorcycle insurance, including third-party insurance and comprehensive car insurance.
  • Travel insurance: for the loss of baggage, passport loss, delayed flights, emergency medical expenses, death.
 
Reinsurance companies will provide general reinsurance services, including both traditional services as well as comprehensive ones and risk solutions. Reinsurance company administrators are required to obtain a special license. For reinsurance companies, the minimum paid capital can be lower than for insurance companies. Our agents recommend verifying these conditions prior to submitting the license application. 
 

What is the main regulator for the insurance sector in Panama?

 
The Superintendency of Insurance and Reinsurance of Panama is the main regulator and an autonomous institution of the state responsible for formulating the general policies and the general regulation for the insurance and reinsurance sector. It is composed of seven directors, who have the tight two vote. Two of the directors are appointed by the Board of Directors of the Superintendency of the Securities Market and the Superintendency of Banks of Panama.
 
Investors who wish to open an insurance company in Panama need to obtain a license from the Superintendency of Insurance and Reinsurance. The application process can be described in more detail by our team of Panama incorporation agents.
 

The insurance sector in Panama

 
According to the monthly economic indicators for the insurance sector, issued by the National Institute of Statistics and Census of Panama, the following figures applied to the industry:
 
  • - Total value of insurance premiums in 2016: 1,023,579.
  • - Total value of insurance premiums in 2017: 1,062,956.
  • - Total value of insurance premiums in 2018: 1,115,032.
  • - Value of insurance premiums in August 2019: 115,817.
 
According to the same source, in 2018, health insurance, auto insurance, individual life insurance and fire, and multi-risk insurance policies had the largest recorded value. Other types of insurance included those for personal injuries and for other means of transportation apart from automobiles. 
 
Our team of Panama incorporation specialists can provide more details about the licensing regime and the particular requirements for companies that operate in this business sector. Company registration in Panama is a simple procedure that can also be accomplished when the investors or founders cannot be present in the country at all times.
 
Contact us for more details about the services we provide for the incorporation of companies. 
 

Comments

There are no comments

Comments & Requests


Please note that client queries should NOT be posted here but sent through our Contact page.

Meet us in Panama

Call us now at +44 203 287 0408  to set up an appointment with our business consultants in Panama City, Panama. Alternatively you can incorporate your company without traveling to Panama.

As a BridgeWest client, you will benefit from the joint expertise of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Panama.

Contact us

We Recommend ClientPedia

This website is marketed by ClientPedia

Banner-Promoting ClientPedia-244px.jpg