What is Instituto Nacional de Seguros

The Instituto Nacional de Seguros (INS) is Costa Rica’s state-owned insurance company and former monopoly insurer. Created in 1924, it has long been the country’s dominant provider of insurance products and also plays important public roles beyond commercial insurance, including managing key social and emergency services.

Key facts

• Type: Autonomous state-owned insurance institution

• Founded: October 30, 1924 (as Banco Nacional de Seguros)

• Headquarters: San José, Costa Rica

• Market role: Largest insurer; former legal monopoly until 2008

• Owner: Government of Costa Rica (100%)

Background and legal status

INS was created by Law No. 12 in 1924 to meet Costa Rica’s protection and insurance needs. It began as Banco Nacional de Seguros and was renamed Instituto Nacional de Seguros in 1948. For decades INS held a statutory monopoly over all insurance and reinsurance operations in the country, a position that ended with the 2008 Ley Reguladora del Mercado de Seguros, which opened the market to private competition while INS stayed as a state entity.

Role in Costa Rica’s insurance framework

Today INS is still the largest player in a mixed state–private insurance market. It underwrites a broad portfolio: life, health, auto, property and casualty, surety bonds, and several compulsory lines such as workers’ compensation and mandatory auto insurance. As a state-backed institution, it operates under close regulation from the Superintendencia General de Seguros (SUGESE), which supervises all insurers in Costa Rica.

Public-service and institutional functions

Beyond selling insurance, INS has important public functions. It administers Bomberos de Costa Rica (the national Fire Department), runs or supports health services including the Hospital del Trauma, and manages the Museo del Jade, a major archaeological museum in San José. These roles make INS both a commercial insurer and a public-service institution in Costa Rican social and cultural life.

Health Insurance Through INS as a Complement to CAJA

Most expatriates in Costa Rica quickly become familiar with Caja Costarricense de Seguro Social (CAJA). Residency approval requires enrollment in CAJA, and monthly contributions are mandatory. CAJA provides universal public healthcare coverage, including doctor visits, specialist referrals, surgeries, hospitalization, and prescription medications.

However, many expats choose to supplement CAJA coverage with private health insurance through INS.

Why supplement CAJA?

While CAJA offers comprehensive medical services, the public system can involve:

• Longer wait times for non-urgent specialist appointments

• Limited scheduling flexibility

• Treatment primarily within public facilities

Private insurance from INS allows policyholders to:

• Access private hospitals and clinics

• Choose specific doctors

• Reduce waiting periods for certain procedures

• Obtain faster diagnostics (MRI, CT scans, specialist consults)

INS offers various voluntary medical insurance products that operate either as:

1. Primary private coverage, or

2. Complementary coverage, reimbursing expenses not fully covered by CAJA.

This dual structure—mandatory CAJA enrollment plus optional INS private insurance—is common among higher-income Costa Ricans and foreign residents alike.

For expats, especially retirees or investors with international assets, having complementary private coverage provides an additional layer of financial predictability. It reduces exposure to unexpected private medical expenses while maintaining compliance with Costa Rica’s residency health requirements.

In practice, many foreign residents maintain:

• Mandatory CAJA enrollment (legal requirement)

• An INS private health policy for enhanced access

• Sometimes an international travel policy for cross-border care

Understanding INS health products is therefore part of understanding how the Costa Rican healthcare ecosystem actually functions.

Mandatory Auto Insurance and the Marchamo

Another area where INS plays a central role in daily life is vehicle insurance—particularly the annual marchamo.

The marchamo is the mandatory annual vehicle circulation permit required for all registered vehicles in Costa Rica. It is administered by INS and must be paid each year, typically during the final months of the calendar year.

The marchamo is not simply a registration sticker. It includes:

• SOA (Seguro Obligatorio Automotor) – Mandatory auto liability insurance

• Property tax on the vehicle

• Traffic fines (if any are outstanding)

• Additional administrative fees

The insurance component (SOA) is legally required and covers:

• Bodily injury to third parties

• Medical expenses for accident victims

• Certain disability or death benefits

Without payment of the marchamo:

• A vehicle cannot legally circulate

• Police may impound the car

• Significant fines may apply

For expats who purchase vehicles in Costa Rica, understanding the marchamo system is critical. Unlike some countries where vehicle insurance and registration are separate processes, Costa Rica consolidates these obligations annually through INS.

Even if a vehicle is rarely used, the marchamo must still be paid if it remains registered.

INS administers this nationwide system, collects payments, and issues the windshield sticker that confirms compliance.

Why Expats Should Understand INS

For foreign residents and property owners, INS is not just another insurance company—it is embedded in Costa Rica’s regulatory structure.

Expats should understand INS for several reasons:

1. Residency Compliance

While CAJA handles public healthcare contributions, understanding complementary INS coverage allows residents to make informed decisions about medical access and financial risk management.

2. Vehicle Ownership Obligations

Any foreigner who owns a car must comply with marchamo requirements. Failure to do so can lead to legal complications, fines, or impoundment.

3. Workers’ Compensation Requirements

If an expat employs domestic workers—such as gardeners, cleaners, drivers, or caretakers—Costa Rican law may require mandatory workers’ compensation insurance issued through INS.

4. Real Estate and Property Insurance

Homeowners, especially those with coastal or high-value properties, often insure against:

• Fire

• Earthquake

• Flooding

• Theft

INS remains a major provider of these policies.

5. Claims Infrastructure

INS operates a nationwide claims system and maintains specialized facilities such as the Hospital del Trauma, which treats accident victims covered under auto insurance policies. This integration between insurance and treatment infrastructure is unusual in many countries and reflects INS’s hybrid public-commercial role.

Public-Service and Institutional Functions

Beyond selling insurance, INS has important public functions. It administers Benemérito Cuerpo de Bomberos de Costa Rica, runs or supports health services including the Hospital del Trauma, and manages the Museo del Jade, a major archaeological museum in San José. These roles make INS both a commercial insurer and a public-service institution in Costa Rican social and cultural life.

Recent context and performance

Despite the end of its monopoly, INS remains financially and operationally strong, with solid returns on assets and capital reported in recent credit analyses, and continues to handle a large share of national insurance claims—such as recent spikes in payouts linked to increases in theft.

For expatriates, understanding the Instituto Nacional de Seguros means understanding more than insurance policies. It means understanding how Costa Rica manages healthcare supplementation, vehicle compliance, public risk coverage, and even emergency services.

In Costa Rica, INS is not just an insurer. It is a structural component of the country’s legal and social framework—one that every resident, foreign or local, eventually interacts with.