Two production sectors surprised in their first quarter results and prevented a further slowdown in the country: insurance and artistic and leisure activities. The first of them, with a growth of 22 percent compared to the first quarter of 2022, It is noteworthy if one takes into account that Colombian consumers are not the most enthusiastic about taking out insurance.

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In fact, of the 3 percent growth in gross domestic product (GDP), one point is explained by financial and insurance services, where the bulk of that contribution came from insurance.

That leading role and, in a certain way, unexpected was explained yesterday by the Federation of Colombian Insurers (Fasecolda). According to the union, given the uncertainty generated by the slowdown in the economy this year, Colombians have chosen to protect themselves more.

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The union points out that in the midst of this environment, the public has chosen to cover itself more against unforeseen events, through the taking of insurance policies. In this way, this industry has been energized. According to Gustavo Morales, president of Fasecolda, only in the first three months of the year the industry has issued policies worth close to 12.2 trillion pesos, 22 percent more than in the same period of the previous year, when that value reached about 10 trillion.

General insurance grew 21 percent annually in the same period; those of life, 13 percent; while those related to social security, 31 percent.
The insurance penetration rate went from 2.95 to 3.17 percent of GDP in the first quarter, says Fasecolda. Companies and people are demanding more insurance products every day to protect them against any eventuality, especially now that the country’s economy has clear signs of slowdown, Morales explained.

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In fact, in that first part of the year, they have already attended claims to insurance companies for 5.5 billion pesos, materialized especially in risks associated with traffic accidents, illnesses and work accidents, personal accidents and pensions, 31 percent more than in the same period of 2022.

“In times of unemployment and economic uncertainty, if we lose a loved one, it is better for that family to have life insurance; if there is active trading by a small businessit is better that you have credit insurance to guarantee coverage of your clients’ payments,” said Morales.

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Results by types of insurance

industry records more than 25 million insured in the different life insurance coverages. In this branch, the performance of group life insurance stands out, with an annual growth of 19 percent, related to greater consumption of mortgage and consumer loans.

For its part, the health sector has with close to 1.3 million insured and had a growth in premiums that went from 644,000 million pesos in March 2022 to 745,000 million in 2023. Fasecolda reports that until March 2023, the General System of Occupational Risks reported 1,100,241 affiliated companies, a growth of 7.1 percent compared to the same period in 2022. The number of insured workers reached 12,508,789, 2.5 percent more.

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“The occupational illness rate will end seriously, going from 369.7 to 155.2 occupational illnesses per 100,000 workers. In addition, the necessary labor mortality rate, from 4.9 to 4 per 100,000 workers, thanks to the promotion and prevention programs developed by the occupational risk managers for their affiliates”, added Gustavo Morales.

According to the union, there are about 284,000 pensioners in the individual savings scheme with solidarity pensions, of which some 130,000 have been able to access pensions by managing insurer payments through pension insurance.
These payments increase to more than 37 billion pesos and it is highlighted that in this insurance there are 7.2 million affiliates with coveragewho in the event of suffering a disability or death would meet the requirements to access a pension financed mainly by insurance.

Finally, the branch of premium compliance for 454,417 million pesos, an increase of 15.4 percent compared to the previous year. According to the disaggregated figures, State policies are the ones that have a greater participation in this type of insurance, with 41 percent; followed by individuals, with 30 percent, and leased, with 13 percent

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