Insurance

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.