According to a report by Global Data, by 2021, the Panamanian insurance market registered a size of US$1.80 billion and is expected to have a compound annual growth rate (CAGR) return of investment of more than 5% from 2021 to 2026. As insurance and reinsurance lawyers in Panama, we make sure that your company participates in this market, having complied with the requirements required by law, which protects you against risks and allows you to operate more efficiently.
Our subject matter specialists have a deep and thorough understanding of this dynamic market, which operates under the strict watch of various government entities and with a mix of local and international companies aligning under a complex regulatory environment.
The Insurance Business
Ancient Greek merchant guilds helped each other financially when one of their members suffered an economic loss during a sea voyage. This idea of sharing risk for mutual benefit evolved into what we know today as the insurance industry.
Today, insurance companies offer various services to face modern challenges. Thanks to technological advances, such as artificial intelligence and big data, statistical analyses that allow managing uncertainties and assessing risks are much more acute. The operations of companies and natural persons are analyzed in more detail to ensure that risk is shared equitably.
In Panama, the insurance market is governed by Law 12 of 2012 and is supervised by Superintendency of Insurance and Reinsurance. In that law, you can find the general rules that must govern insurance and reinsurance companies according to the principles of Panamanian laws and international industry standards.
This sector has an upward trend due to the population’s growing interest in insurance coverage in case of natural disasters and health emergencies. It is also driven by the growth of the middle class, which has increased the demand for reliable insurance products. Law 12 of 2012 establishes controls that seek to generate a balanced, reliable, and stable space for all participants in the Panamanian insurance market.
Administrative Bonds
MCA-Law Firm has extensive experience in administrative bonds, which insurance companies usually issue. In recent years, we have advised several Insurance Companies that serve as guarantors of state contracts.
Our support includes the issuance of opinions, advice in administrative contract resolution procedures, such as in bond execution procedures, and the defense of the insurers’ interests before the contracting entities, the Administrative Tribunal por Public Procurement and the Contentious-Administrative Jurisdiction.
The Administrative Bond has particularities that differentiate it from the bond used to guarantee private businesses. It is regulated in the Single Text of Law 22 of 2006, ordered by Law 153 of 2020, and Resolution No. 2259-2023-LEG/FySE of August 10, 2023, issued by the Office of the Comptroller General of the Republic; that is why our long history in administrative law allows us to provide you with the highest standards of service.
The Reinsurance Business
Reinsurance works as insurance for insurance companies. A sophisticated process allows insurance companies to manage their risk exposure more effectively. It is also a mechanism that supports the sector’s financial stability and resilience, improving its ability to absorb the impacts of significant claims without jeopardizing the solvency of its capital.
In Panama, the reinsurance market is governed by Law 63 of 1996 and is supervised by the Superintendency of Insurance and Reinsurance. Article 5 states that “insurance and reinsurance companies established in the country may place or accept reinsurance with other insurers or reinsurers, domiciled in Panama or abroad.”
With this law, the Panamanian government sought to strengthen the system’s efficiency and solidity, promoting growth and competition in the sector, including national and international actors, to create a dynamic market adaptable to current and future challenges
Why do you need an insurance and reinsurance lawyer?
As insurance and reinsurance lawyers in Panama, we aim to ensure that your company operates within the regulatory framework established by government entities.
Negotiation and contract law:
When signing a contract, it must be aligned with your strategic interests and be legally sound. It must also consider the risk management policies of your company and your insurance partners. We put our experience and in-depth knowledge of the subject at your disposal to achieve this goal.
Litigation and Arbitration:
Having legal counsel to defend your interests can protect your operation and financial stability when disputes that require a dispute resolution expert arise, whether you are facing litigation or arbitration.
Corporate legal representation:
We will represent your company before regulatory bodies, such as the Superintendency of Insurance and Reinsurance of Panama, and its insurance and reinsurance allies to ensure due compliance.
Services
we offer
Our team of insurance and reinsurance lawyers in Panama can assist you in:
- Representation before the Superintendency of Insurance and Reinsurance.
- Issuance of legal opinions.
- Representation of insurers’ interest before public entities, Administrative Tribunal of Public Procurement and before the Contentious-Administrative Jurisdiction.
- Advice on Administrative Bonds.
- Reinsurance Contracts Review.
- Litigation and Arbitration in the field of insurance and reinsurance.
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Our team is here to serve you with integrity and professionalism on a continuous and permanent basis.
