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 Superintendency. Yet, they must register themselves with such Superintendency.
On the other hand, insurance companies require an authorization from the Colombian Finance Superintendency. Insurance companies must comply, in general, with the following requirements to obtain the relevant an authorization from the Colombian Finance Superintendency:
- 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 Superintendency 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 February 2017 and February 2018: (this chart shows the amounts in COP, 1 USD = 2800 COP):
The Colombian Finance Superintendency stated that the volume of financing of Insurtech companies grew from US$131 million in 2011 to US$1,700 million to mid-2017.
Likewise, the number of start-ups created in the Insurtech universe grew significantly between 2010 and 2017, when it went from 39 to 184 new businesses per year.
Alvaro Parra Gómez
Bernardo Rodríguez Ossa