El Salvador

Axco provides details on the life insurance sector including El Salvadoran market participants, reinsurance and distribution channels. The reports describe classes of business from both individual and group life such as whole life, endowment, term life and unit-linked.
Information on non-life classes for example critical illness and private medical insurance.

The report describes the public and private healthcare system in El Salvador, the scope of cover, accessibility financing and provides an analysis of how the public and private systems complement each other.

Axco reports on the three pillars of El Salvadoran pension provision.

• State pension benefits including benefit calculations and eligibility criteria 
• Workplace pension provision; types of schemes calculations eligibility and; tax implications
• Voluntary individual pension provision, type of products and tax implications

The El Salvador report provides an in-depth analysis of the regulatory framework governing social security as well as details on financing and eligibility. Information includes but is not limited to

• state pensions,
• permanent disability benefit
• occupational accident and disease
• maternity and paternity payments 

In 2018 El Salvador ranked 90 in the world insurance market overall according to Axco Global Statistics, and 81 for life business. The life market is characterised by low insurance penetration and low growth.

Life market income in 2018 was USD 219.1mn, representing a slight increase of 1.8% on the previous year and 34.2% of total market income. ....

Pensions were introduced as part of the social security system in 1969. Decree No 927 of 20 December 1996, the Law of the System of Savings for Pensions, introduced a new model with savings for pensions to be in the hands of private pension fund administrators (AFPs). Affiliation to this individual savings account system (SAP) is obligatory for all private and public sector workers. SAP now covers the majority of contributors; however, there were transitional procedures and some remain in the earlier individually funded Public Pensions System (SPP).

Coverage is far from universal ....

Public sector healthcare in El Salvador has in the past suffered from a lack of resources and consequent delays and poor standards; however, the government is making efforts to correct these problems. According to the Ministry of Health (MINSAL), its budget increased from USD 662.12mn in 2019 to USD 757.85mn in 2020.

Private clinics and hospitals are regarded as a good thing by those who can afford ....