Insurance
From The Report: Colombia 2017
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Colombia is the fifth-largest insurance market in Latin America by premiums collected. However, it features weak penetration and density – measures of premiums compared to the size of the economy and the population, respectively – compared to other large markets in the region. Nonetheless, the fact that the country has been able to weather the recent economic storms better than many in the region, by avoiding an outright recession, for example, leave it well placed to start narrowing the gap over the coming years. Over the longer term, a bigger growth opportunity lies in increasing the penetration rate – currently a little over half the level of that in leading Latin American countries such as Chile – while the eventual ageing of the country’s still relatively young population bodes well for demand for the whole range of insurance products, particularly life and pensions. This chapter contains interviews with John Nelson, Chairman, Lloyd’s; and Gonzalo Pérez, CEO, Suramericana.

Articles from this Chapter

Overview

Cover story: The industry is well placed to step up its rate of growth
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Colombia is the fifth-largest insurance market in Latin America by premiums collected. However, it features weak penetration and density – measures of premiums compared to the size of the economy and the population, respectively – compared to other large markets in the region. Nonetheless, the fact that the country has been able to weather the recent economic storms better than many in the region, by avoiding an outright recession for example, leave it well placed to start narrowing…

Interview

Learning fast: John Nelson, Chairman, Lloyd’s, on tackling under-insurance
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Interview:John Nelson What are the greatest challenges facing Colombia’s insurance sector, and what role can insurance play in supporting economic growth? JOHN NELSON: Colombia’s economy continues to grow in the face of some challenges; however, it is clear that the recent peace agreement will further boost the economy down the road. Currently, there is a greater propensity for foreign direct investment in Colombia, which is a sign of an attractive market. These investments are often…

Interview

Covering cultivation: Gonzalo Pérez, CEO, Suramericana, on regional trends and the need for more insurance coverage in the agricultural sector
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Interview:Gonzalo Pérez How can the insurance industry in Colombia create better agro-insurance products that will boost inclusion? GONZALO PÉREZ: It is important to advance in terms of financial education, as well as to simplify regulation and access to insurance. In a digital economy, and in a post-conflict scenario at a national level, it is essential to rethink our solutions and even business models. This should be done through proper management of trends and risks, as that allows us…

Analysis

Meeting demand: Penetration and density are set to rise with regional income levels
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Latin America has a population of more than 600m people and a combined GDP of over $5trn, and both have grown significantly since the turn of the century. Nonetheless, the region has been hit hard by the ebbing of the commodity super cycle in recent years, as well as still relatively sluggish global growth in the wake of the 2008-09 financial crisis. The region has been in outright recession for two straight years, contracting by 0.1% in 2015 and by an expected 0.7% in 2016. According to…