International Brokers

Using their global know-how and expertise, international brokers are set to significantly boost Colombia’s nascent insurance culture.

Where does Gallagher Colombia fit within the Colombian insurance ecosystem, and how does the company utilize the company’s resources and expertise abroad to benefit Colombian clients?

ALFONSO URDANETA GUTIÉRREZ Gallagher has a different business model, one Gallagher: under a single vision we provide risk consultancy services to our clients that may result in risk transfer solutions through our insurance and/or reinsurance capabilities. Gallagher worldwide specializes in sectors that coincidentally are the ones projected to drive the country’s economy: energy, power, construction, infrastructure, and financial services, aside from our expertise in cyber risks, weather and agriculture.

The pandemic has brought about several advantages, operationally speaking. What has been your experience with regard to the digitalization of activities?

ERNESTO SIERRA One of the few advantages is the ease with which we are now able to contact suppliers and clients via electronic means. What gives us an advantage is that the insurance culture in Colombia was not sufficiently developed for us to virtually approach buyers before. We instead had to head out with our briefcases to drum up business. 50% of all premiums are generated from compulsory policies and car insurance, which meant brokers did not have a strong-enough sales force to reach out to potential clients. Now, however, you are able to send identity theft, credit card protection, and unemployment insurance offers to far more people via email, and, hence, receive far greater uptake. Bancassurance is strictly limited to personal insurance, and therefore we need to work more on the issue of contractibility in order to break into SME-based economies and increase sales in this area. We are currently developing the platforms necessary to facilitate outbound sales and conversions easily and effectively.

What was Gallagher Colombia’s focus in 2020, and what products and services are driving growth?

AUG 2020 was a challenging year for everyone. Our primary focus was on our people, keeping everyone safe to be able to support our clients through these challenging times. We managed not only to maintain but to grow our portfolio, mainly driven by our casualty lines of business and through our alternative risk transfer and consultancy units.

Can the legal framework for insurance in Colombia be improved or made more efficient in order to take advantage of the sales capacity uncovered by the pandemic?

ES The regulator, the Superintendence of Finance, has been working on this issue. Insurance had previously been used as a means of money laundering, which fortunately was detected and which is why SARLAFT is required. In addition, we did not hold fast the issue of filling in forms, sending support, the issue of tracing. Now, there is a project that we hope will be approved that includes an update to SARLAFT and would allow us to work this way for the next three years. The issue of the digitalization in this sector is an affordable one, but we need to come together in order for it to work.

What is your outlook for the Colombian insurance industry, and what opportunities and challenges are in store?

AUG We are currently facing hard market conditions, a challenging economic outlook and slow-moving recovery. Nevertheless, our focus maintains in keeping our people safe to be able to take care of our clients and support them through these stormy sailing winds until we all reach safe harbor.

ES If the people involved in the insurance industry do not advance in technological terms, we are destined to disappear. The issue of intermediation will come under heavy threat, so this is an opportunity. Employers should be much more active in providing solutions to a population that demands insurance, though due to issues of economic capacity this is not the case. We are also thinking about new types of insurance. There is an issue of innovation that is forcing us to look at other insurance options for people. We are evaluating one of the cornerstones, which is the issue of education from preschool. We are also looking at insurance options, regardless of whether it is with a policyholder. The last few years have seen the most innovation in terms of new products. I invite us all to think about what we can come up with, with or without an insurance company or a broker, and provide insurance solutions that can provide us with a little relief right now to a demanding society.