Colombia Life & Non-Life Insurance Market Trends

Mirroring the efforts of Colombia's leading financial conglomerates at expansion into Latin American and Central American markets in recent years by acquiring banking assets, the same pattern is beginning to emerge in the insurance sector. With relatively low formal barriers to accessing the market, a large number of foreign players have entered the Colombian insurance sector in recent years. Foreign entrants have typically targeted particular segments or niches, rather than competing across all business lines with the biggest market players. Typically, foreign firms have entered through the acquisition of a domestic firm, but there are also some examples of greenfield entries, again usually with a focus on particular niches or segments. A notable example is the 2014 acquisition of a controlling share in Confianza. Confianza was the leading surety writer in Colombia, with a particular focus on insurance related to infrastructure projects, such as the 4G road-building programme.