Fasecolda: Premiums to grow 15% in 2008

Premium volume in Colombia will likely rise 15% this year compared to 2007 but slow over the next few years given a more sluggish economy, Gonzalo Pérez, chairman of the board at local insurance association Fasecolda, told BNamericas. Colombian insurers grew life and non-life premiums 16.7% in this year's first quarter to 2.2tn pesos (US$1.29bn). Premium volume accounted for 2.3% of the country's GDP, which is below the Latin American average of 2.5%. Fasecolda recently launched a campaign to deepen insurance penetration in the country with the aim of getting premiums to reach 3% of GDP by 2015. Products aimed at individuals and to a lesser extent to SMEs will lead growth over the next few years, Pérez said, but warned the system is challenged to improve its value offer and distribution channels. Pérez is also chairman of the country's largest insurer Suramericana. The full interview with Gonzalo Pérez will be published in this week's Perspectives to be sent to subscribers on Thursday.