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 authorisation to operate from the Colombian Finance Superintendence. Yet, they must register themselves with such Superintendence. 

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

  • Company’s bylaws which state the company’s social objective to provide insurance services.
  • A certificate stating the amount of capital they hold correspond as required by Colombian law. 
  • 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.

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

There are no official figures as to online insurance activity. Yet, the following graph represents the market growth from 2019 to 2021. Such amounts are expressed in thousand million pesos. Bear in mind that as of 14 February 2022, USD $ 1 = COP $ 3917,52.

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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