Insurance
From The Report: Colombia 2013
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The insurance sector has experienced significant growth in recent years as a rise in disposable income, an expansion of the formal economy, falling unemployment and gradual advancement on major infrastructure projects have helped expand demand across the spectrum of general and life insurance products. The number of insured has doubled between 2008 and 2011 and, at an average growth rate of 9.6% over the past five years, contributions from pensions and social security policies are raising the industry’s capitalisation to new levels. Low penetration rates suggest ample room for growth while new opportunities are becoming apparent in the microinsurance segment. Proposed regulatory changes, which include plans to implement International Financial Reporting Standards by 2016, are expected to further strengthen the highly concentrated sector.
This chapter includes interviews with David Bojanini, President, Grupo SURA; and Raúl Fernández Maseda, President, Mapfre Colombia.

Articles from this Chapter

Overview

Future opportunities: New policy changes promise to help sustain sector growth
OBG
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The insurance sector has consistently outperformed Colombian GDP growth in recent years. A rise in disposable income, an expansion of the formal economy, falling unemployment and gradual advancement on major infrastructure projects have helped push up demand across the spectrum of general and life insurance products. The number of insured has doubled between 2008 and 2011 and, at an average growth rate of 9.6% over the past five years, contributions from pensions and social security policies…

Interview

OBG talks to David Bojanini, President, Grupo SURA
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Interview:David Bojanini Although starting from a low base, the insurance sector has seen double-digit growth for a decade. How sustainable is this level of expansion? DAVID BOJANINI: While insurance penetration in Colombia is still low compared to neighbouring countries, it has risen at a constant pace. In fact, Colombia had one of the largest insurance growth rates in the world in 2012. The sector will be able to maintain double-digit growth as long as the economy keeps the positive dynamism…

Analysis

Expanding offerings: Microinsurance is providing new opportunities for growth
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Rapid expansion in the insurance industry over the past decade has largely been focused on Colombia’s medium- and higher-income groups, which together make up a little more than 30% of the population. However, as competition is forcing premiums on some policies to unsustainable lows, industry players are eager to extend their reach into the large low-income segment by means of large-scale, low-premium policies. Moreover, lobbying efforts for regulatory amendments to incorporate microinsurance…

Interview

Establishing order: OBG talks to Raúl Fernández Maseda, President, Mapfre Colombia
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Interview:OBG talks to Raúl Fernández Maseda, President, Mapfre Colombia What initiatives are under way to increase insurance penetration? RAUL FERNÁNDEZ MASEDA: Although sector performance has been very good, surpassing GDP for the past 10 years, penetration is still low, keeping Colombia below the Latin American average. The insurance industry represented more than 3% of GDP in the region, while in Colombia it registered 2.48% in 2012. The industry is positioning itself well by adapting…

Analysis

A changing landscape: New reforms are expected to further strengthen the sector
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The financial regulatory framework in Colombia enjoys a solid reputation, both domestically and among international ratings agencies. In recent years, the insurance sector’s growth has been accompanied by the implementation of improved capital and solvency provisions, the strengthening of the industry’s leverage ratios and efforts to meet international standards. Requirements for risk management and internal control systems have also improved, while transparency and disclosure of financial…