Colombia, September 26, 2024 — There is a quiet storm on the roads of Colombia. It does not howl like the winds of a hurricane, but it cuts just as deep. In every crash, every collision, in the grind of metal against metal, lives are altered. The insurers, the ones standing at the crossroads of hope and loss, now face an unexpected and heavy burden. More than the sinister shadows of theft, it is the sheer force of road accidents that weighs them down.
A Storm on the Roads, More Than the Thief’s Hand
It used to be that vehicle theft haunted the dreams of insurance companies. But now, the tides have shifted. Gustavo Morales Cobo, the steady voice of the Federation of Colombian Insurers (Fasecolda), spoke this truth at the International Convention of his industry: “The accidents on our roads, not the thefts in the night, are what keep us up. The cost, it seems, is greater than we ever anticipated.”
In the first half of this year alone, the numbers climbed like vines in the jungle—more than 473,000 victims of accidents, Morales revealed. Insurance claims surged, reaching 2.07 billion pesos, and in that upward climb, they left insurers reeling. It was a number 6.7 percent higher than the year before. For those in the industry, it wasn’t just a number—it was a testament to the growing risk on Colombian roads.
Blocked Roads, Blocked Policies
Yet there is another truth that must be told. In the heat of protests, when transport companies block the very arteries of the nation’s highways, they may also block their path to protection. “It is as if we were insuring an arm that lifted a weapon,” Morales said, his voice somber with the weight of the metaphor. Transporters who cause this kind of harm might find themselves unable to return to the safety of a policy. They become “ininsurable”, and in that, they lose their legal right to drive.
“Without insurance, these vehicles,” Morales declared, “will have no place on the roads. The nation breathes a sigh of relief, no longer under the constant threat of their protests.”
Motorcycles: The Silent Culprits on the Rise
But behind all of this, like a current beneath a placid surface, lies another truth: motorcycles. They are the ghosts of the road, appearing in the wake of nearly every collision. Eighty-four percent of accidents in Colombia involve a motorcycle, and yet, only 3 percent of these riders carry voluntary insurance. It is a number so small it almost disappears, yet its impact is vast, a ripple that becomes a wave.
“Motorcycles,” Morales said, “are the pulse of this crisis.” The roads are full of them, a living testimony to a nation in motion, but also a reminder of how fragile life on the road can be.
The Economy Runs on Insurance’s Wheels
Yet, insurance isn’t just about accidents or theft. It’s the lifeblood of economies. “It is,” as Morales beautifully put it, “the lubricant of commerce.” Without it, the wheels of business and investment would grind to a halt. The premiums that people pay, in their millions, are not just a shield—they are the fuel that drives infrastructure, that funds public debt, that feeds the heart of the financial markets.
But the insurance industry, while essential, faces its own storm. As the world shifts, so too does the way we think about regulation. Morales warned that the lines between banking and insurance regulation are blurring. But insurance is not a bank; it is a promise, a contract that must be honored even in the face of a hurricane or a firestorm.
The Future of Insurance in a Changing World
And then there is the future—a future shaped by technology, by the subtle hands of data, analytics, and artificial intelligence. “Now,” Morales said, “we can see risk with eyes sharper than ever before.” We can know the threats that loom over us, sometimes even before they arrive. And in this world, sometimes the safest choice is not to insure at all. In regions where climate change stretches its arms wide, certain risks become too great.
As Morales painted this picture, he reminded us that there are places where insurance is no longer an option, where the sky’s anger and the earth’s tremors have made it impossible to offer protection.
A Call to Action: The Promise of Insurance in Colombia
In the end, though, it is not just about loss. It is about what we build in its wake. As Colombia faces new challenges, Morales and Fasecolda stand ready to meet them. With every policy issued, with every risk calculated, they are shaping the nation’s future.
“Insurance is not just a financial product,” Morales said. “It is a promise to the people, a hand extended in the dark.”
And so, as Colombia’s roads stretch out before us, both paved and unpaved, so too does the road ahead for the insurance industry. There will be bumps and bends, but with careful guidance, there is also the promise of safety and protection.
