Colombia Mandatory Accident Insurance Policy Issuance Up 48% After Government Discount Measures Introduced

Colombia’s insurance industry trade association, Fasecolda, has indicated that sales of Colombia’s mandatory motor vehicle injury insurance policies known as SOAT are up 48% compared to a year ago, after the entry into effect of decree 2497, which established a 50% discount off the policy premium for some categories of vehicles, such as motorcycles with engine displacement less than 200cc.

Between December 19 and January 18, 2023, more than 1.3 million policies have already been issued, with the greatest response is in the motorcycle segment, with 765,816 policies issued (104% growth).

“We see with satisfaction that citizens have responded positively to the measure of the national government and insurance companies have accompanied its implementation. 2022 closed with 9.4 million vehicle owners with life-saving insurance, 348,150 more than at the end of 2021,” said David Colmenares, president of the Fasecolda Board of Directors.

SOAT policy issuance for motorcycles went from 375,554 policies in the period from 12/19/2021 to 01/18/22 up to 765,816 policies sold in November, before the price reduction measure took effect.

Colombia’s Caribbean region, including the departments of Atlántico, Córdoba, Bolívar, César, Magdalena, Sucre, and Guajira, registered a 40% growth in policy issuance.

All registered vehicles using Colombian roads must carry this liability insurance coverage that pays for physical harm or death due to vehicular accidents in the country. SOAT covers drivers, passengers, and pedestrians, and is underwritten by private insurance companies.

“On the road we are all protagonists, therefore, from the insurance industry, we call on citizens to have good behavior on the roads and continue to comply with the obligation to acquire the SOAT to be protected,” admonished Colmenares.

Image courtesy Fasecolda