Insurance

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.