The insurance industry in Colombia is comprised of the following: 

  • Insurance companies
  • Insurance or reinsurance intermediaries 
  • Foreign reinsurers representation offices
  • Foreign insurance and reinsurance companies
  • Foreign intermediaries who can act locally on behalf of specials registries (REACOEX, RAISAX and RAIMAT)

There are currently 24 general insurance companies registered in the country, 20 of which are life insurance companies, and two are insurance cooperatives. Additionally, there are 49 insurance and reinsurance brokerage companies, and 19 representation offices of foreign reinsurers. The industry has grown significantly in the last decade, with an increase of 12.3% and a premium penetration of over 2.79% of the GDP. This growth has been leveraged by an increase in population with a greater ability to pay and, to this extent, able to take out personal insurance policies for cars, individual health and life, which are making the market more dynamic.

Over the course of 2017, the insurance industry experienced a stable performance in terms of losses, expenses and commissions. Insurance companies issued a total of COP$ 25.9 billion in premiums – 9.2% more than in 2016. The damages insurance line was the one to issue most premiums in 2017, with a participation of 34.9%, equivalent to COP$ 9 trillion, followed by the personal insurance line with COP$ 7.3 trillion. Third place was occupied by social security branches with COP$ 7.2 billion, followed by the SOAT branch, with a lower participation and premium issuances of COP$ 2.3 billion.

The industry demonstrates an opportunity for growth in digital technology, where certain initiatives are focused on offering a new model of customer service for addressing certain challenges Colombia has in terms of satisfying the needs of increasingly sophisticated and technological consumers. An example of these initiatives is the ‘Insurtech’ sector, which is the new companies and startups responsible for injecting technological innovations in insurance sales.

Featured Information

  • There are 46 insurance companies operating in the country. 
  • Colombia is the 5th largest insurance market in Latin America in terms of collected premiums. 
  • During the last 17 years, the insurance industry has grown by 12.3%, which has been higher than the country’s GDP, locating it among the 9%.
  • The penetration of insurance in the Colombian market increased on average by 1% in the last year. [1]
  • The penetration of the insurance market for 2017 was 2.8%.
     

Source: Colombia's insurance association Fasecolda (Fasecolda), Financial Superintendence of Colombia (SFC), Fitch Ratings

[1]http://www.dinero.com/edicion-impresa/negocios/articulo/aseguradoras-internacionales-llegan-a-colombia/248135

Experience
Provided advice regarding contractual, corporate and regulatory matters to METLIFE, ASSURANT, LLOYD’S, WILLIS TOWERS WATSON, and MUNICH RE.
Provided advice regarding contractual, corporate and regulatory matters to METLIFE, ASSURANT, LLOYD’S, WILLIS TOWERS WATSON, and MUNICH RE.
Representation of foreign reinsurance companies for STARR, BUPA, ASSURANT, MUNICH RE, and LLOYD’S
Representation of foreign reinsurance companies for STARR, BUPA, ASSURANT, MUNICH RE, and LLOYD’S
Provided representation at Financial Superintendence of Colombia to WILLIS TOWERS WATSON, CARDIF, ZURICH, and CHUBB.
Provided representation at Financial Superintendence of Colombia to WILLIS TOWERS WATSON, CARDIF, ZURICH, and CHUBB.
Provided advice regarding claims related to GENERALLI, SCHINDLER, MERCK, and PAZ DEL RIO.
Provided advice regarding claims related to GENERALLI, SCHINDLER, MERCK, and PAZ DEL RIO.
Advice on the implementation of programs of massive insurance distribution to METLIFE, ASSURANT, BUPA, FALABELLA, HOMESERVE.
Advice on the implementation of programs of massive insurance distribution to METLIFE, ASSURANT, BUPA, FALABELLA, HOMESERVE.
Advice on mergers and acquisitions on the insurance industry to AIG, CHUBB, AFP HABITAT and TALANX.
Advice on mergers and acquisitions on the insurance industry to AIG, CHUBB, AFP HABITAT and TALANX.