Insurance Market Development

Institutional Setting: Legal/ Judicial Sys-
tem 
The responses highlight the fact that the ma-
jority of those surveyed view judicial sys-
tems (including enforcement) as substan-
tially slow, unpredictable, and in need of 
improvement. Because these institutions 
tend to be critical to the effectiveness of in-
surance operations, their inefficiency most 
likely directly reduces the effectiveness of 
insurance markets in the region. 
12
Webb, Masci and Velarde (2006) present summary 
statistics from a survey of people in the industry in 
order to measure what factors are more closely re-
lated to effective insurance markets.
17

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Table 6: Descriptive Statistics, Perceptions About Factors Affecting 
Insurance Markets in Latin America and the Caribbean 
 
Adequacy of Institutions that Support Insurance Markets (Judicial System) 
Efficiency of the judicial system: Needs improvements = 91% 
49% needs to improve completely 
42% needs to improve in many aspects 
Efficiency of law enforcement: Needs improvements = 88% 
50% needs to improve completely 
37% needs to improve in many aspects 
Is the judicial system too litigious, slow and unpredictable?: Yes = 76%
39 % strongly agreed
37% agreed 
Is improvement needed in the judicial system?: Yes = 74%
35% strongly agreed 
39% agreed 
Poor understanding of insurance products 
Insurance products are too complex and not too well explained: Yes = 76% 
21% strongly agreed 
55% agreed 
In your opinion, how much knowledge of insurance does the general population have in your country?: Poor = 83% 
66% poor 
17% very poor 
Cost of providing insurance
Insurance coverage is too costly: Yes=75% 
19% strongly agreed 
56% agreed