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Insurances - Colombia

Colombia
  • The Insurances market in Colombia is expected to reach a projected market size (gross written premium) of US$8.69bn in 2024.
  • Life insurances dominate the market with a projected market volume of US$5.71bn in 2024.
  • The average spending per capita in the Insurances market is estimated to be US$166.00 in 2024.
  • When compared globally, it is evident that the United States holds the highest nominal value, reaching US$3.8tn in 2024.
  • The gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 2.45%, resulting in a market volume of US$9.80bn by 2029.
  • In terms of gross written premium, the United States is expected to generate the highest amount in 2024, reaching US$3.8tn.
  • Colombia's insurance market is experiencing a surge in demand due to increasing awareness about the importance of protecting against natural disasters.

Definition:

Insurance is a financial arrangement that provides individuals or businesses with protection against unexpected financial losses. In exchange for regular payments, known as premiums, an insurance policyholder is covered in case of specific events, such as accidents, illnesses, or damage to property. When a covered event occurs, the insurance company compensates the policyholder, helping them recover from the financial impact of the loss or damage. Gross written premium (GWP) is the main indicator of the insurance market. It is the total amount of money that an insurance company collects from policyholders for their insurance coverage before deducting expenses or commissions.

Structure:

The insurance market comprises life and non-life insurances. The non-life insurance market covers the following insurance types: health, motor vehicles, property, general liability, and legal.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, gross claim payments, loss ratio – calculated as gross claim payments divided by gross written premium, for selected European countries the distribution channels of insurance bookings, and the share of insureds in the total population for over 50 countries for live, health, motor vehicle, property, general liability, and legal insurances.

In-Scope

  • Life insurances
  • Non-life insurances

Out-Of-Scope

  • Some non-live insurances, such as travel insurance, freight insurance, and accident insurance
  • Reinsurance
Insurances: market data & analysis - Cover

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Insurances: market data & analysis

Study Details

    Gross Written Premium

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Gross Claim Payments

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Loss Ratio

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Analyst Opinion

    The Insurances market in Colombia has been experiencing significant growth and development in recent years. Customer preferences in the insurance market in Colombia are shifting towards more comprehensive coverage and personalized services. Customers are increasingly looking for insurance products that offer not only traditional coverage but also additional benefits such as wellness programs and digital services. This trend is in line with global market preferences, where customers seek more value and customization from their insurance providers. Trends in the market show a growing demand for insurance products related to health and property in Colombia. As the middle class expands and disposable incomes rise, more individuals are looking to protect their health and assets through insurance coverage. Additionally, the increasing awareness of the importance of insurance in mitigating risks has led to a higher uptake of various insurance products in the market. Local special circumstances in Colombia, such as regulatory changes and government initiatives, have also influenced the insurance market. The government's efforts to promote insurance penetration and improve access to insurance services have created a more favorable environment for insurance companies to operate in the country. This has resulted in increased competition among insurers, leading to innovation and better offerings for customers. Underlying macroeconomic factors, including stable economic growth and a growing population, have contributed to the development of the insurance market in Colombia. As the economy continues to expand, more individuals and businesses are seeking insurance to protect their interests and investments. This, coupled with favorable demographic trends, has created a conducive environment for the growth of the insurance sector in the country.

    Methodology

    Data coverage:

    Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

    Modeling approach / Market size:

    Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

    Forecasts:

    In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

    Additional Notes:

    The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

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    Insurances: market data & analysis - BackgroundInsurances: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Sep 2024

    Source: Statista Market Insights

    Explore more high-quality data on related topic

    Global insurance industry - statistics & facts

    Both the number and cost of global risks are rising due to drivers, such as climate change and cyber crime, and these trends are impacting in the insurance industry. The global insurance market was worth almost six trillion U.S. dollars in 2022, but this looks set to increase substantially in the coming years. Cyber crime is consistently seen as a leading risk to global business by risk management experts. Meanwhile, the cost of natural disaster losses rose over the past two decades. These risks are likely to grow in the future, which will sustain the growth of the insurance sector.
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