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

  • Modified asphalt trials in Brazil
    October 17, 2012
    An urgent need to improve and extend its road network means that Brazil is open to innovation and new ideas - the timing looks good for Kraton and its highly modified asphalt. Kristina Smith reports On 15th August Brazilian president Dilma Rousseff announced a US$66 billion (BRL 133 billion) investment package for the country’s road and rail networks. Of that, $21 billion (BRL 42 billion) is earmarked for the upgrade or construction of 7,500km of highways through a series of concessions. “We’re starting an
    Read More
  • Indonesia plans $490 billion infrastructure spend over the next five years
    October 8, 2014
    According to the government of Indonesia, US$490.7 billion (IDR 6,000 trillion) will be needed in the next five years for a series of major infrastructure projects across the country including roads, bridges, power plants, ports and airports. The government hopes that investment projects like these will boost its economic growth rate to 7% per annum versus 5% this year. This latest announcement follows on from an Indonesian government report last November, which unveiled plans to invest $35 billion in new
    Read More
  • Latin America construction machine demand to grow
    December 15, 2017
    Demand in Latin America for heavy construction equipment is expected to continue growing - Allied Market Research reports. Latin America is set to see strong growth in demand for construction machines. This is according to a new report published by Allied Market Research, called Latin America Heavy Construction Equipment Market by Equipment, Application, and End User: Opportunity Analysis and Industry Forecast, 2014-2022. The report shows that the market size for Latin America’s off-highway equipment sector
    Read More
  • Colombia’s key 4G road projects underway
    January 5, 2018
    Colombia is moving ahead with its 4G programme, as nine of the 30 key projects in the road development scheme now financially secured. The remaining 21 projects are now being built, while 25 of the projects from the 1G, 2G and 3G schemes are already in use, having expanded Colombia’s network by a total of 3,743km. Colombia's National Infrastructure Agency (ANI) says that 10 projects are being carried out entirely with private funding. In addition, over the last seven years, 48km of tunnels and 430 bridges
    Read More

Highlighted Content