The pandemic influenced the increase in the prices of different insurances, given the uncertainty generated by the virus in the bulk of the population.
The increase in claims, the worldwide logistics crisis and the lack of inventory of motor vehicles and auto parts pushed up the value of auto insurance earlier this year by 27%.
As of January 2021, the approximate price of all-risk vehicle insurance in Colombia was $2.18 million. However, cut to January 2022, the price was $2.82 million. According to an analysis carried out by SeguroCanguro.com, a digital platform for the sale of car insurance, Valle del Cauca is one of the regions with the highest increase in the value of insurance, going from an average price of $2.57 million to $3, 36 million, which meant a growth of more than 76% in its value. Then, they are followed by regions such as Antioquia, with an increase of 30%; Atlantic (29%) and Bogota (28%).
Martín Alvemo, CEO of SeguroCanguro.com, which brings together more than 50 insurance companies from 13 insurers in the country, explained that the sector has had to raise premiums due to a very poor technical result in 2021.
“It must be taken into account that the costs of handling the claims, as a proportion of the premium, rose substantially. As of October 2020 they were 56% and in October 2021 they were already 69%. The impact that this increase has had on the underwriting results of insurers is substantial and, instead of a positive margin, as occurred in 2020, the sector has a variation of -8%, ”he said.
The crisis also put car insurers in “check” for two aspects, the first is that it increased the costs of imported spare parts; and the second is due to the difficulty of entering new vehicles into the country, as a consequence, commercial values have risen, which has impacted the amount that insurers must pay in cases of total losses.
