Social and political climate regarding online insurance activity is positive as individuals are getting used to online banking and this trend would most likely be followed by InsurTech.
InsurTech services have not been specifically regulated in Colombia. Thus, the general regulation for insurance activities applies to InsurTech.
Insurance brokers do not need an authorization to operate from the Colombian Finance Superintendence . Yet, they must register themselves with such Superintendence.
On the other hand, insurance companies require an authorization from the Colombian Finance Superintendence . Insurance companies must comply, in general, with the following requirements to obtain the relevant an authorization from the Colombian Finance Superintendence:
- Company´s by-laws which state the company´s social objective to provide insurance services.
- A certificate stating the amount of capital they hold correspond to at least a sum of COP$ 7.861.000.000 (approx. 3 million USD).
- CV of the administrators that allows the Superintendence to see the responsibility and suitability of the person.
- A feasible study of the company that must have the technological and administrative infrastructure that will be used to develop the social object.
There are no official figures as to online insurance activity.
Yet, FASECOLDA (the insurers guild) issued the following chart which shows the growth of insurance industry between May 2018 and May 2019: (this chart shows the amounts in COP, 1 USD = 3206 COP):
A study published by the Banca de Oportunidades, Fasecolda and the Colombian Financial Superintendence 2018, stated that 90.3% of Colombian households have some type of protection or insurance scheme against risks.
Alvaro Parra Gómez
Bernardo Rodríguez Ossa