Name
Global FinTech Guide
Country _ Name
Colombia
SectionTitle
InsurTech
Body
InsurTech is composed of the words 'insurance' and 'technology'. It is used as a collective term for the application of modern technologies in the domain of insurance services.

Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.

Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer's insurances.

Introduction

Attitude of the country towards InsurTech-services

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.

Legal affairs

Obligations and requirements to provide InsurTech-services

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 Superintendency of Finance. Yet, insurance brokers must be registered with this Superintendency.

On the other hand, insurance companies require an authorization from the Superintendency of Finance. Insurance companies must comply, in general, with the following requirements to obtain the relevant authorization from the Superintendency of Finance:

  • Company's bylaws which state the company's social objective to provide insurance services.
  • A certificate stating the amount of capital they hold as required by Colombian law.
  • CV of the administrators that allows the Superintendency of Finance to confirm the suitability of each person.
  • A feasibility study of the company evidencing it has the technological and administrative infrastructure that will be used to develop the social object.


Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area

N/A

Economic conditions

Market size for InsurTech-services and biggest companies in this business area

FinTechs from the InsurTech segment account for 1.6% of all FinTechs registered in Colombia . Most of InsurTech providers in Colombia are insurance comparators, digital brokers, insurance wallet apps, group insurance or P2P.

Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area

N/A

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