Insurance industry premiums fall 4.3% in the third quarter.

In the index accumulated to September, the fall in the placement of premiums was mainly affected by the fall in the automotive section, which had a loss of 12.6% in the reference period. Insurance damage, which include fires or catastrophic risks, was the second most affected item with a drop in 8.5% while the pensions recorded a retreat of 6.2%.

The placement of premiums in life insurances had a contraction of 2.8% while insurance premiums accidents and illnesses were the only ones to report a growth of 8%.

the worst is yet to come

Recaredo Arias highlighted at a press conference that the insurance sector could have worse results in the fourth quarter of 2020 and in 2021. The industry could close 2020 with a fall in premiums of 3.16%.

“We have many challenges regarding reinsurance capacities, which are being reduced and now there are much more rigid criteria on issues precisely such as pandemic reinsurance, reinsurance of violent socio-political events, that is, vandalism by political events, and other types of issues that imply very important challenges for the insurance sector, “he said.

In addition, the director general of the AMIs said that another relevant issue for the sector has to do with legislative issues, although he did not give details of which ones concern him the most.

“There are many laws that are being developed and therefore they imply great challenges for the insurance sector,” he said.