Market Trends of Colombia Life & Non-Life Insurance Industry
This section covers the major market trends shaping the Colombia Life & Non-life Insurance Market according to our research experts:
Growth of Financial Sector and Foreign Penetration into the Insurance Market
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.
Increased Consumer Awareness about Insurance Products is Driving the Market
Growing life expectancy, tax incentives on insurance products, favorable savings associated with insurance are encouraging the customers across insurance segments.The government's policy of insuring the uninsured has progressively pushed the insurance penetration in Colombia and the proliferation of insurance schemes. The increasing number of digital distribution channels is favoring the insurers to easily obtain insurance policies. Insurtech, messaging platforms, and online sales channels are contributing to the insurance landscape in the country. A recovery in private consumption, combined with continued fiscal stimulus measures will release the pressure on household finances. As a result, there will be a change in attitude towards seeing life insurance as an investment vehicle.
