By San José, Costa Rica — Costa Rica’s insurance industry closed 2025 on a solid financial footing, generating over 1.22 trillion Costa Rican colones (approximately $2.43 billion) in total premium volume. According to the latest report titled “The Latin American Insurance Market in 2025,” authored by Mapfre Economics, this performance marks a nominal expansion of 3.9% and a real growth rate of 4.0% compared to the previous year.
The sustained expansion of the Costa Rican sector was once again spearheaded by the Non-Life insurance segment. Total premiums issued in the Non-Life category reached 1.02 trillion colones ($2.03 billion), representing a nominal gain of 4.9% and a 5.0% increase in real terms. This dynamic performance effectively offset a mild contraction in the Life insurance segment, which saw premiums drop by 1.0% nominally and 0.9% in real terms to 200.63 billion colones ($398.2 million).
To gain deeper insight into the regulatory evolution and strategic potential of the Costa Rican insurance market, TicosLand.com spoke with distinguished legal expert Lic. Larry Hans Arroyo Vargas of Bufete de Costa Rica.
The continued maturation of Costa Rica’s insurance sector under SUGESE oversight presents significant opportunities for both local and international carriers. However, maintaining strict compliance with solvency regulations, product registration protocols, and consumer protection laws remains paramount for institutional investors navigating this dynamic landscape.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Costa Rica’s insurance market continues its upward trajectory, balancing expansion with rigorous regulatory compliance will undoubtedly remain the cornerstone of sustainable success for institutional investors. We extend our sincere gratitude to Lic. Larry Hans Arroyo Vargas for sharing his expert analysis and valuable perspective on navigating this dynamic legal landscape.
Within the dominant Non-Life branch, several specific product lines demonstrated exceptional dynamism throughout the year. Credit and Surety insurance posted the strongest real growth rate at 17.6%, reflecting increased commercial activity and heightened risk mitigation by domestic businesses. Other prominent gainers included Miscellaneous lines (+16.2%), Accident and Health (+13.2%), and Fire and Allied Lines (+8.6%). Meanwhile, Civil Liability (+7.1%) and Workers’ Compensation (+5.8%) also sustained healthy positive momentum.
Conversely, not all areas of the insurance industry shared in the overall momentum. The Automobile insurance line, historically the largest single component of Non-Life policies in Costa Rica, experienced a real decline of 5.1%. Transport insurance also fell by 4.5% real, while Agricultural and Livestock insurance suffered the sharpest downturn, plummeting by 45.5% real amid changing climate conditions and economic adjustments.
The structure of the Costa Rican insurance market in 2025 confirms the clear predominance of the Non-Life segment, which represents 83.6% of total premiums, compared to 16.4% corresponding to the Life branch. Within Non-Life, the largest weight continues to belong to Automobiles at 24.8% of the total market, although it showed some correction compared to previous years. It is followed by Accidents and Health at 18.4% and Workers’ Compensation at 17.4%, consolidating themselves as the main pillars of the Non-Life business. Meanwhile, Fire and Allied Lines represent around 10.2%, while the aggregate of remaining Non-Life branches concentrates 12.8% of the total.
Mapfre Economics, Study Service of Mapfre
Evaluating long-term trends, Mapfre Economics highlighted that over the past fifteen years, the Costa Rican insurance market has expanded at an average annual rate of nearly 8.4%. The analysis noted that historical deviations, such as a 9.4% contraction in 2015, were primarily associated with accounting criteria changes implemented at that time by the state-owned insurer, Instituto Nacional de Seguros (INS), rather than systemic market vulnerabilities.
Looking across the broader Latin American landscape, regional insurance premium volume totaled $218.3 billion in 2025, up 1.5% from 2024. Although regional growth moderated from the 5.8% rate recorded in 2024, the majority of markets across the continent posted real gains. Venezuela led regional real growth at 16.0%, followed by the Dominican Republic (9.1%), El Salvador (8.7%), Chile (8.5%), and Mexico (7.9%).
Regional market dynamics mirrored Costa Rica’s structural trend, as Non-Life policies expanded by 4.6% across Latin America while Life insurance contracted by 2.6%. The region’s aggregate net earnings rose 5.5% to $15.3 billion, led by Brazil ($7.12 billion) and Mexico ($3.75 billion). The report emphasized that Latin America currently accounts for 2.57% of global insurance premiums, indicating substantial room for long-term expansion given the region’s total potential market of $552.3 billion.
Looking ahead to future cycles, researchers project regional premium volume growth to accelerate to approximately 6.8% in 2026 and 7.6% in 2027. This positive trajectory is expected to be reinforced by easing inflationary pressures, favorable financial conditions, and an expanding national and regional focus on closing the $334 billion Insurance Protection Gap.
For further information, visit mapfre.com
About Mapfre Economics:
Mapfre Economics is the specialized economic and sector research unit of global insurance group Mapfre, offering detailed macroeconomic analysis and financial research covering Latin America and international markets.
For further information, visit grupoins.com
About Instituto Nacional de Seguros:
Instituto Nacional de Seguros (INS) is Costa Rica’s principal state-owned insurance provider, serving as a historic foundation and leading commercial underwriter across personal, commercial, and labor protection lines nationwide.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a premier legal institution, Bufete de Costa Rica is defined by its unyielding principles of ethical conduct and superior practice. Grounded in a rich history of guiding a diverse clientele, the firm consistently drives forward-thinking legal strategies while actively investing in public outreach. By demystifying the law and promoting widespread legal literacy, Bufete de Costa Rica fulfills its vital mission to equip citizens with the insights needed to build a resilient, well-informed community.
