Strong premium growth in Colombia’s life insurance industry in the first eight months of this year was reportedly driven largely by the rapidly expanding group life segment.
Citing data from Colombia’s financial regulator, Superintendencia Financiera de Colombia, total premiums for the Colombian life insurance industry grew 12.2% year-on-year in the January-August period, reaching COP 6.03 trillion (US$2.98 billion), reported BN Americas.
The group life segment is said to have performed considerably above the market, with written premiums increasing 19.8%. It is reported that total life insurance claims rose 8.57% in January- August 2014 to COP2.9 trillion.
Data from Timetric’s Insurance Intelligence Center reveals the Colombian life insurance segment recorded a compound annual growth rate (CAGR) of16.2% in terms of gross written premium during 2009?2013, to value COP9 trillion (US$4.4 billion) in 2013.
The segment’s performance was attributed to regulatory changes and the industry’s premium growth, the strong performance of the pension insurance category and the developing group life insurance business.
These factors, along with the nation’s rise in per capita annual disposable income, are likely to generate business between 2013-2018.