Lina Vargas Vega – [email protected]
–
For many Colombians, having insurance is considered a luxury. However, because of the pandemic, this thinking began to change. Marco Arenas, country manager at Liberty Seguros, spoke about this trend, the company’s innovations and the performance of the sector during 2020.
How did the insurance industry fare last year?
We maintained the growth trend. It was lower compared to other years, but it was 1% in the industry, which is very positive considering the context. Insurance penetration in Colombia is 2.8% of the Gross Domestic Product (GDP), still below the average for the region, which represents an opportunity for growth. For example, in the United States, insurance penetration is 7% and, in Asia, there are countries where it reaches 11%.
What were the branches that grew the most in a pandemic?
In the Colombian market, the insurance companies with the most presence are automobiles and Soat, these lines continued to grow. We have a strategy focused on people and MSMEs. We are focused on auto, home, business and life insurance. In cars, we grew more than the market.
What do you think was the big change that the pandemic brought to the sector?
We had to adjust to the new reality very quickly.
The pandemic helped us to generate greater awareness in the client, in the need to make sure. From now on, very few people will be reluctant to take out a life insurance or a health policy.
What innovations did insurers have to develop in the products they offer?
In terms of intermediaries, we develop a sufficient infrastructure to be able to provide remote attention, we generate digital tools that allow self-management. The pandemic also strengthened our bond with employees, who are now more satisfied with their work
For the client, we have digital inspections to sign a policy or pay a claim.
For many, having insurance is a luxury, how can the insurance market be democratized?
That is a myth that exists in Latin America and is associated with the lack of financial education. In Colombia, financial sector actors have a great responsibility to explain to people why insurance is an investment and not an expense and what the level of prioritization should be when insuring ourselves.
How is Colombia compared to other countries in purchasing policies?
The average penetration of insurance in Latin America is 3.1% of GDP, we are at 2.8%, it is an acceptable level and we have a good opportunity for growth.
What do you think of the capital market reform?
We have reviewed the proposals for this reform and we believe that anything aimed at strengthening the sector, establishing stronger equity requirements and prudential regulation for the industry is welcome.
On average, how long does it take to respond to a claim?
Colombian regulation has a maximum period of one month to deal with a claim. However, we are challenging ourselves so that these response times are getting better and the customer experience is good.
Did the pandemic create the need for insurance?
What we have observed is the need for a greater network of care for our insured in health policies. A good rhythm was generated in the levels of life and home insurance. The pandemic raised awareness. It is not yet seen in terms of real growth, but I am sure it will be reflected in 2022.
How much were the returns they had to make for lower risks?
We identify risk reduction in light cars, taxis, motorcycles, civil liability and personal accidents. Due to mobility restrictions, we had to make refunds of those premiums to policyholders.
THE PROFILE
Marco Arenas is a lawyer from the Universidad Externado de Colombia, a master’s degree in Private Law from the Universidad de los Andes, a specialist in Insurance, Financial Legislation, Social Security and Insurance Law. He works as a postgraduate teacher at the Pontificia Universidad Javeriana and at the Externado de Colombia University. He has 15 years of experience in the Colombian insurance market. He was Vice President of Legal and Compliance at Liberty Seguros since 2018. He assumed the role of country manager in April 2020, after an internal reorganization of the company within the Andes Market.
– .
