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Chairman of the Board and CEO of Pan-American Life Insurance Group Visits Colombia
Colombia
July 25, 2023
Estimated Reading Time: 3m
Colombia, July 24, 2023. At the end of 2022, the Colombian insurance industry had more than 25 million insureds under various life insurance coverages. In the first quarter of 2023, the Colombian insurance industry, specifically the life line of business, recorded growth of 19 percent.
These numbers have prompted José S. Suquet, Chairman of the Board and CEO of Pan-American Life Insurance Group (PALIG), who is now visiting Colombia, to conclude that the country is on the right track for the goal of insuring the life and health of Colombian families.
Suquet also commented that the Colombian operation is key for Pan-American Life, not only because it is in a market with over 50 million people, but because of the diversification it represents in the value proposition of life agencies, employee benefits, and mass marketing in the region.
“The ongoing growth in revenues and premiums that the Group has had globally for 18 years highlights the strength of our relationship with insureds and the trust they have placed in us. As a result, total global premiums, including from the Colombian operation, grew 12.4 percent in 2022, to USD 1.48 billion in 2022, while revenues increased 1 percent to USD 1.23 billion,” said Suquet.
“Worldwide, we have insured seven million lives, 20 percent of whom are in Colombia,” he added.
According to Diana Vargas, country manager of Pan-American Life of Colombia, the company promotes business entrepreneurship among insurance agents, who are continuously trained and certified to distribute individual universal life and personal accident insurance. “Eighty percent of our total sales force are women entrepreneurs,” she said.
Challenges
The average investment in life insurance in Colombia, including Colombian health insurers (EPS) and occupational accident insurers (ARL), is 400,000 Colombian pesos per person. Of this amount, half is in insurance tied to coverage of financial obligations.
Meanwhile, more than half of the Colombian population has no insurance. This translates into a major opportunity to continue promoting a culture of insurance and financial education, both for the business sector and for individuals.
That is why Pan-American Life has innovated in Colombia by marketing “universal life insurance,” a common product in the U.S. market. Although the Colombian market is more oriented toward temporary insurance, the Company has begun to offer flexible plans that are tailored to each client.
Achievements
Suquet stated that the company is celebrating 112 years since its inception and 84 years of uninterrupted presence in the country, since 1939.
In terms of corporate social responsibility, Pan-American Life of Colombia has continued to support the “Porque Quiero A Colombia” (Because I Love Colombia) Foundation, most recently to build a dining hall to provide the children at “Mi Primera Infancia” kindergarten with adequate food and educational conditions.
José S. Suquet’s visit to Colombia seeks to celebrate the momentum of the Company’s operations in the country, including the strategies that have led it to grow by more than 30 percent annually.
“Our balance sheet remains strong, with “A” ratings and a stable outlook from AM Best and Fitch Ratings. Pan-American Life Insurance Company’s ratings provide strong support for the financial strength that allows us to be there when customers need us,” said Suquet.
ABOUT PAN-AMERICAN LIFE INSURANCE GROUP
Pan-American Life Insurance Group (PALIG), a leading provider of life, accident and health insurance throughout the Americas, has been delivering trusted financial services since 1911. The New Orleans-based Group is comprised of more than twenty-member companies, employs more than 2,100 worldwide and offers top-rated individual and/or group life, accident and health insurance, employee benefits and financial services in 49 states, the District of Columbia (DC), Puerto Rico, the U.S. Virgin Islands, and throughout Latin America and the Caribbean. The Group has affiliates and branches in Costa Rica, Colombia, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Panama, and 13 Caribbean markets, including Barbados, Cayman Islands, Curacao and Trinidad and Tobago. For more information, visit the Pan-American Life website at palig.com, follow us on Facebook @PanAmericanLife, Twitter @PanAmericanLife, Instagram @panamericanlife.latam, and connect with us on LinkedIn at Pan-American Life Insurance Group.