Colombian surety insurers to benefit from new highway infrastructure projects

The Colombian government's recently unveiled infrastructure programme for highway construction over the next 10 years is tipped to raise demand for surety products owing to government contracts requiring surety insurance to protect public resources. Higher demand of these types of P&C insurance coverage will help insurers absorb their fixed costs, thereby improving underwriting results and reducing insurers' reliance on investment yields to sustain their profitability, Moody's has claimed in a report.
October 11, 2013 Read time: 1 min
The Colombian government's recently unveiled infrastructure programme for highway construction over the next 10 years is tipped to raise demand for surety products owing to government contracts requiring surety insurance to protect public resources.

Higher demand of these types of P&C insurance coverage will help insurers absorb their fixed costs, thereby improving underwriting results and reducing insurers' reliance on investment yields to sustain their profitability, Moody's has claimed in a report.

According to Colombian financial regulator Superfinanciera, premiums for surety and construction accomplishment risk constituted 11% of Colombia's total P&C insurance premiums in 2012, with more than 25 companies participating in these insurance lines.

Through the Autopistas para la Prosperidad programme, the Colombian government plans to spend US$7.4 billion (14 trillion pesos) over the next decade on infrastructure to upgrade and construct more than 8,000km of road and more than 100 tunnels via concessions to private companies.
Road Structures

Related Content

  • Challenges and investment opportunities in East Africa transport infrastructure Sector
    November 21, 2014
    East Africa offers considerable potential for transport infrastructure expansion and investment - Shem Oirere reports Infrastructure, infrastructure and more infrastructure is what is needed to make East Africa the favoured destination and Kenya, Tanzania, Uganda and Rwanda have unveiled grand plans to enhance the infrastructure both nationally and regionally.” This is how market analyst Deloitte introduced its 2014/15 budget analysis for the four countries in July.
    Read More
  • Colombian deals
    February 7, 2012
    The Colombian authorities are agreeing terms with the Colombian electricity transmission company Interconexion Electrica (ISA) for the Autopistas de la Montana highway project. The Bogota-Villavicencio highway was also awarded although other infrastructure projects are still awaiting approval.
    Read More
  • BICES invests in a new venue and a new time slot for its 2015 show
    January 6, 2017
    BICES 2015, China’s biennial international construction equipment show has made a series of step-changes by moving the venue to the New China International Exhibition Center (NCIEC) in Beijing, by bringing the timing forward from mid-October to September 22-25 2015 and by re-emphasising that the event continues to be run by the industry for the industry. Dressta vice president Howard Dale welcomed the initiatives saying it was right to hold the event where “many of China’s state-owned companies are headquar
    Read More
  • BICES invests in a new venue and a new time slot for its 2015 show
    April 21, 2015
    BICES 2015, China’s biennial international construction equipment show has made a series of step-changes by moving the venue to the New China International Exhibition Center (NCIEC) in Beijing, by bringing the timing forward from mid-October to September 22-25 2015 and by re-emphasising that the event continues to be run by the industry for the industry. Dressta vice president Howard Dale welcomed the initiatives saying it was right to hold the event where “many of China’s state-owned companies are headquar
    Read More

Highlighted Content