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

  • Indonesian road firm PT Hutama Karya bullish
    February 14, 2020
    The state-owned Indonesian road firm, PT Hutama Karya, is bullish with strong results.
    Read More
  • The US FAST Act: a job left unfinished
    April 4, 2016
    US roads and bridges are crumbling at an alarming rate as state governments wring their hands over the increasingly scarce money for repairs. Enter the FAST Act. But is it enough? US state transportation department officials, as well as highway contractors and operators, breathed a sigh of relief in December. For months the highways infrastructure sector waited anxiously to see where the necessary money for road projects would come from. For several years, the Highways Trust Fund – the usual way of paying f
    Read More
  • ARTBA predicts growth in transport construction
    December 2, 2016
    Modest growth in transport construction is predicted in the US in 2017 by the American Road & Transportation Builders Association (ARTBA). According to a report by ARTBA chief economist, Dr Alison Premo Black, total transportation construction and related market activity is expected to grow 1.3% in 2017, driven largely by increases in highway and bridge private construction activity supporting residential and commercial developments. In 2017, the market is expected to reach US$247.8 billion, up from $244
    Read More
  • Vinci buys Peruvian toll concession holder Lamsac from Invepar
    August 9, 2016
    Vinci Highways has acquired Peruvian toll road operator Lamsac from the Brazilian group Invepar for around US$1.67 billion. The deal is for 100% of Lamsac which is the concessionaire of the Línea Amarilla toll road in the centre of the Peruvian capital Lima. Vinci Highways, which is Vinci Concessions’ international highways subsidiary, also gets the Peruvian company PEX, Lamsac’s electronic toll collection operator. A statement from Vinci said that Lamsacholds a concession contract with the municipali
    Read More

Highlighted Content