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

  • Colombia: Toyo Tunnel award to be made in September
    July 15, 2015
    The contract award for Columbia’s 9.75km Toyo Tunnel project will be made on September 28, according to Columbian media. The tunnel, costing almost US$760, will be part of a new 39km road between Santa Fe de Antioquia and Canasgordas. World Highways reported in January that the central government will contribute $216 million towards the project, the regional government of Antioquia department will contribute $337 million and the Medellin city government will pitch in with $212 million. Columbia’s N
    Read More
  • Sourcing road financing for East Africa’s network expansion
    December 4, 2015
    East Africa’s ambitious road expansion programme is seeing the network expand significantly – Shem Oirere writes The East Africa countries of Kenya, Tanzania, Uganda and Rwanda have announced ambitious road sector expansion plans in the 2015/16 financial year. This is despite their national budgets being weighed down by huge deficits and persisting lack of capacity to spend resources allocated to the sector in previous years. With the huge budget deficits, the countries will have to look for alternati
    Read More
  • Colombia’s new transport infrastructure to boost national construction industry
    July 30, 2013
    Huge investment in Colombia’s transport infrastructure is expected to lead to substantial market growth in the country’s construction industry, according to new research by Timetric. In its research report; ‘Construction in Colombia – Key Trends and Opportunities to 2017’, Timetric, who provide online data, analysis and advisory services to key financial and industry sectors, states, “Colombia’s Ministry of Transportation plans to invest COP102.3 trillion (US$56 billion) in transport infrastructure developm
    Read More
  • New Colombian highways being built
    April 26, 2021
    New Colombian highways are being built at present.
    Read More

Highlighted Content