MEXICO CITY, October 22, 2021--(BUSINESS WIRE)--AM Best is maintaining a negative market segment outlook on Colombia’s insurance industry, owing mainly to the COVID-19 pandemic, which continues to pressure the country’s economic activity.
The new Best’s Market Segment Report, titled, "Market Segment Outlook: Colombia Insurance," notes that although economic conditions in the country have improved over the past few years, development has been limited by the continued spread of COVID-19 and the imposed lockdowns and travel restrictions. Additionally, Colombia relies on the hydrocarbon and mining sectors, which makes it vulnerable to shifts in global commodity prices and demand.
As of December 2020, Colombia’s insurance market registered USD 8.4 billion in premiums, maintaining its position as the sixth-largest insurance market in Latin America, with a 1.2% year-on-year growth. Insurance penetration rate has grown by 3.1% since 2018, with the life insurance segment accounting for 54% of total gross premiums written, and the non-life segment making up the remaining 46%.
AM Best expects Colombia’s insurance market to withstand current challenges despite an economic contraction of 6.8% in 2020. Nevertheless, the pandemic and the resulting damage to the economic environment will continue placing a considerable strain on the segment. AM Best will continue to monitor the economic, political and regulatory landscape and the impact on Colombia’s insurance industry.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=313939.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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