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

  • Global growth in machine rental
    May 20, 2015
    The machine rental sector is undergoing significant expansion worldwide – Dan Gilkes reports. Plant hire, equipment rental, leasing, call it what you will, being able to use a machine when and where you need it, with no further concerns relating to ownership costs, depreciation or sudden repair bills, remains a compelling argument for many contractors. Which is one of the main reasons for the continued growth in popularity of equipment rental across the world. Rental has been big business in the UK, the US
    Read More
  • A new transportation project for Northern Southeast Asia
    March 2, 2022
    Transport in Northern Southeast Asia is to benefit from a new US$145 million project
    Read More
  • US road safety is a cause for concern
    September 6, 2021
    There is concern over a worrying trend in US road safety, while there have been steady gains in road safety in Europe
    Read More
  • Expectations for growth of UAE infrastucture
    February 9, 2012
    The INTERMAT Middle East event is being launched at a pivotal time of major infrastructure development in the region. As with most sectors, the highways industry has not had a fantastic 18 months in the Gulf. Not only has the recession impacted the delivery of projects across the board, GCC Governments' attention have been switching increasingly to rail, as plans to roll out a Gulf-wide rail system gather steam. GCC countries will invest over US$119.6 billion in infrastructure projects over the next decade
    Read More

Highlighted Content