Non-life insurances - Colombia | Statista Market Forecast

The Non-life insurance market in Colombia is expected to reach a projected market size (gross written premium) of US$2.97bn in 2024.
In the same year, the average spending per capita in the Non-life insurance market is estimated to be US$56.80.
The gross written premium is predicted to have an annual growth rate (CAGR 2024-2029) of 2.53%, resulting in a market volume of US$3.37bn by 2029.
In comparison to other countries, the United States is projected to generate the highest gross written premium in the Non-life insurance market, amounting to US$2.5tn in 2024.
Non-life insurance market in Colombia is experiencing a surge in demand due to the growing middle class and increased awareness of risk management.

Definition:

Non-life insurance, also known as general insurance, covers a wide range of insurance products that protect against financial losses related to events other than death. Non-life insurance is designed to provide policyholders with financial support and protection in various circumstances, like car accidents, property damage, and medical expenses.

Structure:

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, and the loss ratio – calculated as gross claim payments divided by gross written premium.

Health insurances
Motor Vehicle insurances
Property insurances
General Liability insurances
Legal insurances

Live insurances
Other non-live insurances, such as travel insurance, freight insurance, and accident insurance
Reinsurance

Over the past few years, the Non-life insurances market in Colombia has shown significant growth and development. Customer preferences in the Colombian non-life insurance market are shifting towards more comprehensive coverage options that provide protection against a wide range of risks. Customers are increasingly seeking tailored insurance solutions that address specific needs, such as property damage, liability, and motor vehicle coverage. This trend is in line with global market preferences, where consumers are becoming more risk-conscious and looking for robust insurance products to safeguard their assets and investments. Trends in the Colombian non-life insurance market indicate a growing demand for innovative insurance products, such as cyber insurance and climate-related coverage. As the country's economy continues to digitalize, there is a heightened awareness of cyber risks among businesses and individuals, driving the need for specialized insurance solutions. Additionally, the increasing frequency of extreme weather events in Colombia has led to a rise in demand for insurance products that provide protection against natural disasters and climate-related damages. Local special circumstances in Colombia, such as regulatory changes and market dynamics, are influencing the evolution of the non-life insurance sector. The Colombian government has implemented reforms to enhance the regulatory framework for insurance companies, promoting transparency and consumer protection. These changes have contributed to a more competitive market environment, with insurers focusing on improving service quality and product offerings to attract and retain customers. Underlying macroeconomic factors, including GDP growth, inflation rates, and interest rates, play a crucial role in shaping the non-life insurance market in Colombia. As the economy expands and disposable incomes rise, there is a greater capacity for individuals and businesses to invest in insurance products. Moreover, stable inflation and interest rates contribute to a favorable business environment for insurers, enabling them to offer competitive pricing and sustainable growth opportunities in the market.

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.

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.