2024-02-14 18:11:51
During the year 2023, this key sector of the national economy registered notable growth, reflected in various indicators that show an increase in insurance penetration in Colombian society.
Diario del Huila, Economy
In a world where risks lurk around every corner, The insurance industry in Colombia has experienced significant progress in raising citizens’ awareness of the importance of protecting themselves against possible adversities.
During the year 2023, This key sector of the national economy recorded notable growthreflected in various indicators that show an increase in insurance penetration in Colombian society.
2024 began with catastrophic events that we never thought were so close to us. In January alone, 31 forest fires were recorded in the country due to high temperatures as a result of the El Niño phenomenon.
“In 2024 our goal is to continue working to further close the protection gap among Colombians. We have fundamental tools that the National Development Plan 2022-2026 gave us, such as the expansion of parametric insurance to other branches other than agriculture – which ensures the food supply of our country -, and the new powers of the Executive to modify and make the SOAT sustainable , the insurance that saves lives“said Gustavo Morales Cobo, executive president of Fasecolda.
According to data collected during the last year, the insurance penetration indicator in relation to Gross Domestic Product (GDP) rose from 3.24% to 3.42%, evidencing a greater commitment of Colombians to financial protection against adverse events.
This increase translates into an average investment of $970,177 pesos per person in insurance, reflecting greater awareness about the importance of safeguarding wealth and health.
Offer extension
One of the main drivers of this growth has been the expansion of the insurance offer to various sectors and risks, such as fires, earthquakes, avalanches, floods, traffic accidents, health, life, work accidents, among others.
The insurance industry has demonstrated its ability to adapt to the changing needs of Colombian society, providing increasingly comprehensive and accessible solutions.
In the field of general insurancethe notable progress in agricultural insurance stands out, where a record number of producers, especially small farmers, were protected. Thanks to parametric insurance, coverage was extended to more municipalities and products, thus contributing to the strengthening of food production in the country. In addition, historic resources were allocated to subsidize this insurance, marking a milestone in the protection of actors in the popular economy.
In the automobile and transportation segmentAlthough there was a drop in the sale of new vehicles, the industry demonstrated resilience by generating added value around insurance, offering specialized products and assistance that respond to the needs of drivers. However, the challenge remains of increasing insurance penetration in the motorcycle segment, where protection is still low despite being one of the most vulnerable actors on Colombian roads.
Motorcyclists the furthest behind
Mandatory Traffic Accident Insurance (SOAT) continues to be a fundamental pillar for the protection of Colombians on the roads. Although extensive coverage has been achieved, especially on four-wheeled vehicles, there is still work to be done to ensure that all vehicles are properly insured, especially motorcycles.
In the year 2023, Colombia’s automobile fleet reached 18.9 million vehicles, of which 11.5 million correspond to motorcycles. However, it is worrying to note that Only 39% of these motorcycles have a valid Mandatory Traffic Accident Insurance (SOAT) policy.
In the same year, the total number of vehicles insured with SOAT was 9.7 million. Within this figure, motorcycles represented 47%, while cars and trucks contributed 41%, leaving the remaining 11% for other types of vehicles.
SOAT companies disbursed a total of $2.6 billionintended for medical care of victims of traffic accidents and the rest of the coverage.
During the year 2023, more than 1.1 million victims of traffic accidents were preliminarily registered. Of this worrying number, more than 773,000 corresponded to vehicles that had a current SOAT, while approximately 263,000 were related to vehicles without SOAT or whose identification was not possible.
Compliance and Civil Liability
According to the SECOP, Electronic Public Procurement System, 96% of state contracts have compliance insurance as a guarantee.
For 2023, The number of insurances that protect the contracts reached 3.33 million, 7.2% more than for 2022. Regarding civil liability policies, the policies reached 4.17 million, 165% more than in 2022. Regarding the payment of claims, it reached the figure of $576,336 million, while that of Civil Liability reached $532,325 million.
The industry awaits the regulation of article 101 of the National Development Plan on contracts to be executed through Popular-Public Associations by popular economy organizations.
In social security, the role of the insurance sector in protecting pensions and occupational risks stands out. The insurance industry completed 7.7 million people with pension insurance coverage and 123,000 annuity pensions. In the first, claims worth $2.7 billion were addressed.
However, the fight against fraud remains a major challenge for the insurance industry. The detection and prevention of possible fraudulent events are essential to guarantee the sustainability and reliability of the insurance system in Colombia.
By 2024, the insurance industry is expected to continue its work to close the protection gap in the country, promoting insurance for small-scale productive units in vulnerable populations, as well as strengthening financial education and risk prevention. In addition, work will be done on updating regulations and addressing the main challenges of the sector, including cyber, digital and environmental risks.