Life insurance - Colombia | Statista Market Forecast

The Life insurance market market in Colombia is expected to reach a market size (gross written premium) of US$5.71bn in 2024.
The average spending per capita in the Colombian Life insurance market market is projected to amount to US$109.20 in 2024.
Furthermore, the gross written premium is anticipated to display an annual growth rate (CAGR 2024-2029) of 2.40%, resulting in a market volume of US$6.43bn by 2029.
Comparing globally, the United States is expected to generate the highest gross written premium, amounting to US$1.3tn in 2024.
Colombia's life insurance market is experiencing a surge in demand due to the country's growing middle class and increasing awareness about financial protection.

Definition:

Life insurance is a type of financial product that provides financial security for individuals and their families. In simple terms, when you buy a life insurance policy, you pay regular premiums to the insurance company. In return, if you were to pass away while the policy is in effect, your designated beneficiaries receive a lump sum payment, known as the death benefit, which can help them cover living expenses and financial needs. Life insurance is designed to provide peace of mind and support for loved ones in the event of the policyholder's death. 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.

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, and the share of insureds in the total population for over 50 countries.

Death benefit insurance
Endowment insurance
Disability insurance
Dowry insurance
Birth insurance
Term life insurance
Whole life insurance
Universal life insurance
Burial insurance
Other types of life insurance

Health Insurance
All non-life insurance types
Reinsurance

Over the past few years, the Life insurance market in Colombia has shown significant growth and development.

Customer preferences: Customers in Colombia are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. There is a growing demand for customizable policies that cater to individual needs and provide additional benefits such as savings or retirement planning options.

Trends in the market: One of the noticeable trends in the Colombian Life insurance market is the rise of digital distribution channels. Insurers are leveraging technology to reach a wider customer base and offer convenient online purchasing options. Additionally, there is a shift towards more transparent and easily understandable policy terms to build trust with consumers.

Local special circumstances: Colombia's evolving regulatory environment has played a crucial role in shaping the Life insurance market. Reforms aimed at enhancing consumer protection and improving industry standards have increased the overall confidence in life insurance products. Moreover, the country's young population demographic presents a significant opportunity for insurers to tap into a growing market segment.

Underlying macroeconomic factors: The stable economic growth and increasing disposable income levels in Colombia have contributed to the expansion of the Life insurance market. As more individuals look to secure their financial future, the demand for life insurance products is expected to continue growing. Additionally, the low insurance penetration rate in the country indicates significant potential for further market development.

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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

The biggest life insurance market globally is the United States, and it was almost twice as large as the second-biggest market, China. People take out life insurance to financially support their loved ones after their death. The payout is often used to cover funeral expenses, replace income earned by the deceased, or pay for children's education. It can be paid out in a lump sum or as an annuity, which is paid in regular installments for either a specified time or for the lifetime of the beneficiary. In 2022, the United States was the leading life insurance premium writing country, with a total value of life direct premiums written exceeding 600 billion U.S. dollars. The second and third-largest life insurance markets were China and the United Kingdom, respectively.