May 26, 2015

The Insurance and Reinsurance Law Review, Colombia

Third edition of The Insurance and Reinsurance Law Review by Neil Beresford and Raquel Rubio focussing on Colombia.

Introduction

Colombia is among the world’s most dynamic insurance markets, attracting leading global companies to compete against strong local players.2 During the past year the industry maintained a healthy growth rate of almost 9 per cent, outpacing the general economy and benefiting from stable political and economic policies. This year the insurance sector is likely to see growth of between 8 and 10 per cent.3

Following this trend, the Colombian legal system has undergone a very substantial process of improvement to satisfy the growing demand of business. The Colombian regulator is recognised as one of the most advanced in the region, gearing towards the establishment of international solvency standards,4 while a new body of consumer protection laws will lift the industry’s domestic reputation and stimulate local demand. With the entry into force of a new infrastructure law and special regulations, the government has cleared the way for much-needed infrastructure projects.5 Dispute resolution procedures have been fundamentally improved by the introduction of an arbitration law in October 2012 and a new Civil Procedure Code is set to enter into force gradually over the next few years.