Countries › Costa Rica › Guide › 10. Capital markets and finance › Insurance and reinsurance in Costa Rica: SUGESE authorisation, capital in development units and cross border cover

Insurance and reinsurance in Costa Rica: SUGESE authorisation, capital in development units and cross border cover

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Last verified: 2026-10-30 · Status: Stable

Insurance was opened to private competition by Ley 8653 of 2008. Insurers need SUGESE authorisation and must be exclusive purpose sociedades anónimas, branches of foreign insurers or insurance cooperatives, with capital from UD 3,000,000 (personal or general lines) to UD 10,000,000 (reinsurers) fully paid in cash. Cross border insurance is allowed only within trade treaty commitments and with SUGESE registration, while reinsurance can be bought abroad freely. Insurers must decide claims within 30 days and pay within 30 days of acceptance.

USD figures use the Banco Central de Costa Rica reference selling rate of ₡454.82 per US dollar published for 29 October 2026 (indicator 318 on bccr.fi.cr), rounded to the cent.

Key facts

SUGESE authorisation to write insurance	Yes textLey 8653 art. 2 and 7, as of 2026-10-30 · in force
Minimum capital, personal or general lines insurer	3000000 UDLey 8653 art. 11, as of 2026-10-30 · in force
Minimum capital, reinsurer	10000000 UDLey 8653 art. 11, as of 2026-10-30 · in force
Branches of foreign insurers allowed	Yes, exclusive purpose, with SUGESE authorisation textLey 8653 art. 7(b), as of 2026-10-30 · in force
Deadline to decide a claim and to pay after acceptance	30 and 30 calendar daysLey 8956 art. 48, as of 2026-10-30 · in force
Rate used for USD conversions (BCCR reference selling rate published for 29 Oct 2026)	454.82 CRC per USDBCCR indicator 318, as of 2026-10-30 · in force

The rule

1. Insurance and reinsurance may only be carried out in Costa Rica by entities authorised by SUGESE; public offer of insurance and insurance business need authorisation. CCSS social security and statutory pension schemes are outside the law.Ley 8653, art. 2 and 3, 2008-07-22 official text · verified 2026-10-30

2. Applicants may be Costa Rican sociedades anónimas with insurance as exclusive object, branches of foreign insurers under Código de Comercio art. 226, or insurance cooperatives; the State acts through the INS.Ley 8653, art. 7, 2008-07-22 official text · verified 2026-10-30

3. Minimum capital, valued in development units (UD) under Ley 8507: UD 3,000,000 for personal lines, UD 3,000,000 for general lines, UD 7,000,000 for mixed and UD 10,000,000 for reinsurers, fully paid in cash and first deposited at the BCCR.Ley 8653, art. 11, 2008-07-22 official text · verified 2026-10-30

4. Cross border insurance, intermediation and auxiliary services may be bought from providers in countries with treaty commitments, within those treaties, with SUGESE registration; reinsurance, retrocession and their intermediation may be bought cross border.Ley 8653, art. 16, 2008-07-22 official text · verified 2026-10-30

5. Representative offices of foreign insurers must register with SUGESE and use the phrase 'Oficina de representación de compañía aseguradora'; registration does not allow offering or selling insurance.Ley 8653, art. 17, 2008-07-22 official text · verified 2026-10-30

6. Offering insurance or doing insurance business without authorisation is fined up to 1,000 salarios base per infraction, and the offender cannot apply for authorisation until it pays.
Example: Up to ₡462,200,000 per infraction at the 2026 salario base of ₡462,200. / Up to US$1,016,226.20 per infraction.Ley 8653, art. 42, 2008-07-22 official text · verified 2026-10-30

7. Insurers must answer every claim with a reasoned written decision within 30 calendar days of receipt and pay within 30 calendar days of notifying acceptance.Ley 8956, art. 48, 2011-06-17 official text · verified 2026-10-30

Worked example

A foreign insurer wants to sell general lines. It can register a Costa Rican S.A. or a branch, with capital of UD 3,000,000 paid in cash (the colón value depends on the UD value on the day). Selling without authorisation exposes it to fines of up to 1,000 salarios base, ₡462,200,000 (US$1,016,226.20) per infraction in 2026.

Step by step

Decide subsidiary, branch or cooperative.
Convert the UD capital requirement to colones at the day's UD value and pay it in cash at the BCCR.
File for SUGESE authorisation by category (general, personal or both).
Register intermediaries and any cross border reinsurance arrangements.
Set up claims handling to meet the 30 plus 30 day deadlines.

Common traps

A representative office cannot sell (art. 17).
Cross border direct insurance is limited to treaty commitments; reinsurance is the open channel.
Public sector entities buy from the INS when it offers better conditions (art. 7).

Sources

← Investment funds in Costa Rica: SAFIs, open and closed funds, real estate funds and their taxationInterest rate caps, usury and loan terms in Costa Rica: BCCR maximum rates, microcredit, default interest and fees →

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