Insurance
From The Report: Colombia 2016
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Colombia’s insurance sector has been enjoying strong growth, supported by the country’s underlying rate of economic expansion, a growing middle class, product development and the entry of new players into the industry, with growth being strongest in the life insurance segment of the market. However, penetration and density rates remain low. According to the Colombian Insurers Association, penetration, or total premiums as a percentage of GDP, is 2.6%, while density, or premiums per capita, currently stands around COP400,000 ($147).  Although the country’s general economic growth rate has eased back in 2015, several factors underpin optimism for the insurance sector’s outlook. Low insurance penetration and density rates suggest sufficient room to continue achieving double-digit percentage growth in premiums, while the fourth generation road concession programme is expected to give a boost to general demand.

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Overview

Working together: Overall economic growth is creating new opportunities
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Total premiums paid to Colombia’s insurance companies have been growing at a strong pace in recent years, supported by the country’s underlying rate of economic expansion, a growing middle class, product development and the entry of new players into the industry. Growth has been strongest in the life insurance segment of the market. However, penetration and density rates remain low. According to the Colombian Insurers Association (Federación de Aseguradores Colombianos, Fasecolda), penetration,…

Analysis

Coverage for all: Reaching out to new segments of the population will be central to the industry’s growth
OBG
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Microinsurance is defined as the sale of simple, low-cost insurance products to low-income sectors of the population for segments such as health, life and property risks. Typically these customers may not be formally employed, nor have been previously insured. According to an April 2015 study by BSLatAm, a banking and insurance consultancy, Colombia is the third-largest microinsurance market in the region, with some 8m customers, out of a regional total of 47.3m. In terms of percentage, Mexico leads…