BMI View: The Colombian insurance market is at an intermediate stage of development and is poised forstrong growth over the next five years. Both the life and non-life sectors will benefit from strong economicgrowth and rising disposable income levels. Macroeconomic prowess in the country will be the crucialdriver propelling the insurance industry and rising household incomes will support numerous big ticketpurchases and lead to a higher demand for life and savings products. Additionally, regulatory changes willimprove Colombia's business environment and render it more attractive to foreign insurance companies interms of ease of doing business. As such, we expect to see a rise in the presence of multinational carriers inthe Colombian insurance landscape.
Key Updates and Forecasts
We have made changes to our historical data and revised our forecasts as we are now using the latestupdated insurance reporting methodologies.
Life insurance is set to see double-digit growth rates, in both currencies, over the next five years.Premiums are expected to increase at an average rate of 14.1% - from USD4.4bn in 2017 to USD6.8bn in2021. Local currency growth will also be strong, averaging 13.3% for the five year period between 2017and 2021. Life and savings demand growth will outpace non-life sector insurance growth over the nextfive years to 2021.
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