{"id":15205,"date":"2026-08-02T11:45:00","date_gmt":"2026-08-02T16:45:00","guid":{"rendered":"https:\/\/expat-times.com\/panama\/?p=15205"},"modified":"2026-08-01T22:24:24","modified_gmt":"2026-08-02T03:24:24","slug":"car-insurance-claims-surge-14-6-in-panama-draining-insurer-profits","status":"publish","type":"post","link":"https:\/\/expat-times.com\/panama\/business-economy\/car-insurance-claims-surge-14-6-in-panama-draining-insurer-profits\/","title":{"rendered":"Car Insurance Claims Surge 14.6% in Panama, Draining Insurer Profits"},"content":{"rendered":"\n

A sharp rise in car insurance claims<\/a> is wreaking havoc on Panama<\/a>\u2019s auto insurance market, with insurers<\/a> now paying out 70 cents in claims for every dollar they collect in premiums. New data from the Panamanian Association of Insurers (Apadea) reveals that the sector\u2019s loss ratio<\/a> hit exactly that threshold during the first half of 2026, a level that industry leaders describe as unsustainable. The spike in car insurance claims, which jumped 14.6 percent compared to the same period last year, is forcing a painful conversation about why policies keep getting more expensive and what can be done to stem the bleeding.<\/p>\n\n\n\n

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Insurance claim by Nick Youngson CC BY-SA 3.0 Pix4free<\/figcaption><\/figure>\n\n\n\n

Rising Car Insurance Claims Drive Premium Hikes<\/h2>\n\n\n\n

Auto insurers in Panama wrote $183.7 million in premiums between January<\/a> and June, but they paid out a staggering $128.5 million in claims. That imbalance has pushed the segment deep into the red, with little sign of relief on the horizon. Esilda Gonz\u00e1lez, Apadea\u2019s executive director, didn\u2019t mince words about the cause-and-effect cycle that is driving up costs for everyone.<\/p>\n\n\n\n

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“Of the large mass of premiums the industry collects, practically $0.70 is paid out in claims to the public. Why does car insurance increase? Precisely for that reason, because as insurance usage rises, the result deteriorates. In auto and health we are in the red.” [Translated from Spanish]<\/p>\n<\/blockquote>\n\n\n\n

The 14.6 percent increase in claims volume reflects a troubling trend: more accidents, costlier repairs, and a fleet of vehicles that is both growing and aging.<\/p>\n\n\n\n

The pressure doesn\u2019t come from one single factor. Panama City\u2019s notorious traffic congestion, a nationwide vehicle count that keeps climbing, and supply chain delays that inflate the price of replacement parts all conspire to push car insurance claims higher. Even relatively minor fender benders now generate bills that would have been unthinkable a few years ago, and insurers are absorbing that shock in real time. The result, Gonz\u00e1lez explained, is a direct hit to the bottom line that inevitably circles back to the consumer in the form of higher renewals.<\/p>\n\n\n\n