Life insurance policy purchases near free fall

(newsroompanama.com) Fewer Panamanians are taking out life insurance and the sales figures for the first half of the year show a dramatic drop of 49% compared to 2009.

The fall off in policy purchases is $13.3 million to $26.4 million, according to figures from the Superintendency of Insurance  of Panama.

Industry sources point to the the failure of  the British American Insurance Company, throwing a chill over the market and to  the increase in the cost of policies leading holders to move to cheaper coverage with fewer benefits,

There has been a yewar long downward trend in life insurance consumption, anf  although there have been some upswing months, overall the numbers have been close to free fall.

In May there was a 51.59% decrease and in June, when the bankruptcy of British American was announced , the decrease was 83.27%. July had a downer of 66.28%.

Many customers have canceled policies because of increased premiums or the rising cost of living. Brokers point out consumer concerns following the British American collapse, which forced up the price of premiums. Some policyholders have maintained policies, but have asked for lower monthly payments which, for the broker, means a lower profit margin.

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Original Source: Newsroompanama.com
Date Retrieved: September 28, 2010.