According to the Colombian Federation of Insurers, facecolda, mortality rose by 48% in the last two years compared with the five-year average. Life and personal insurers set aside 1.3 billion for damages, with 80% of cases resolved due to death. With this balance, Allianz Colombia’s president, David Colmenares, outlined ongoing industry challenges and noted compensation paid in life insurance reaching up to 45,000 million due to covid-19.
How did Allianz’s financial results look in 2021?
The figures for the previous year were reasonable given the national context and the insurer sector’s conditions. It is important to recognize two influences on the claim rate, one being covid-19 and the other social protests, which contributed to a lower balance than in 2020 and 2019.
Post-March 2020, applications surged, yet the reality that someone could die from the pandemic is not a desirable focus to dwell on.
CONTRAST
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Mario Cross, Director of Life and the People at Fasecolda
“Women tend to plan more for their own futures and their families, and the country sees a turnout of 51.4 percent among those with the most insurance.”
What was Allianz’s receivable payment situation in 2021?
The largest volume of compensation came from covid-19, which, unlike previous years, included 45,000 million in life payments; in health, the amount was nearly the same; and in social protests, 15,000 million.
What figures were recorded for premium issuances in 2021?
Last year proved strong for premium production with double-digit growth in the insurance sector, and Allianz achieved a 9.9% rise.
Did the current crisis in Ukraine push people and companies to seek more insurance?
Indeed, the crisis is expected to have a broad impact on politics and the economy, as well as on the insurance market. When such events occur, individuals often feel a need to insure, but a lack of deeper knowledge may delay renewals or cancellations during the disruption. Those who understand the risks stay insured.
Insurance penetration in Colombia remains relatively low. The industry projects a path toward 3.5% of GDP in the medium term.
How many policies are currently in force and which types do Allianz affiliates prioritize?
There are a little over 1.5 million insured individuals in Colombia. The auto sector is often the first thought, though people usually focus on insuring the car rather than potential third-party damages.
Allianz ranks as the second large player in this field, with about 400,000 affiliates. Health insurance ranks second, followed by life.
Allianz is also the sole insurer offering a voluntary pension fund with savings and investment solutions for long-term goals. In this area, approximately 35,000 affiliated employees manage around 300,000 million dollars in investments.
How is the agricultural insurance sector performing?
Progress is solid. The portfolio covers crops with support from Finagro and shows positive growth, though this line depends on natural risk. Premiums have grown by about 20% over the last two years.
How does Colombia compare regionally in policy uptake?
Current penetration sits near 3%, below the regional average. Chile leads the region with up to 7% of GDP in insurance participation, more than double Colombia’s figure.
Insurance is still a luxury for many; how can it become more accessible?
Expanding coverage will reduce costs and increase premium volume. Ultimately, broader coverage positions insurance as protection rather than a mere expense. Without life coverage, families face homelessness, underscoring the importance of understanding its value.
How is insurance fraud addressed?
Global data show that between 5% and 15% of claims involve some form of fraud. Uncertainty can push people to exaggerate losses to claim more. To counter this, internal and external teams investigate claims with specialized investigators, aiming for substantial fraud savings this year, targeted at 15 billion.
PROFILE
David Colmenares Spence has led Allianz Colombia as CEO since 2017, steering one of the world’s largest financial groups and the largest international insurer in the market. Sergio Arboleda is a graduate of the university’s Law School and a compensation specialist with nearly two decades of international experience. He has served as Vice Chairman of Fasecolda’s Board of Directors since 2019 and chairs the MBA program at Sergio Arboleda University, coordinating a network of influential business leaders in the country.