Colombia © Copyright Lex Mundi Ltd.

2013

Foreign Insurers

COLOMBIA
Brigard & Urrutia

CONTACT INFORMATION
Carlos Umaña Trujillo / Lucas Fajardo Gutiérrez
Brigard & Urrutia
Calle 70 A No. 4 – 41
Bogotá D.C., Colombia
(057) (1) 3462011
cumana@bu.com.co / lfajardo@bu.com.co
www.bu.com.co

1. What is the definition of insurer and reinsurer in your jurisdiction?

As set forth in article 1037 of Colombian Code of Commerce, an insurer can be defined as the
legal entity that undertakes risks and is duly authorized for such purposes in accordance with
Colombian laws and regulations. For the case of reinsurers, Colombian laws and regulations do
not provide a clear definition. However, a reinsurer can be defined as the legal entity that
undertakes risks resulting from insurance contracts in which the reinsurer undertakes with the
insurer the same obligation as the latter has contracted with the holder or the insured.

2. Can a foreign insurer and/or reinsurer underwrite insurance or provide capacity to

underwrite insurance in your jurisdiction?

Only insurance companies or cooperatives duly incorporated in Colombia with the prior
authorization of the Superintendence of Finance (Colombian regulator) are authorized to engage
in the insurance business in Colombia. After July 15th, 2013, a branch established by a foreign
insurance company will be able to operate as a local insurer. Such branch will be subject to
supervision by the Superintendence of Finance and the foreign insurance company will be at all
times liable for the obligations assumed by the branch in Colombia.

However, it is important to note that by virtue of Law 1328 of 2009, after July 15th, 2013 the
Colombian insurance market will be opened to foreign insurers who will be able, without
Colombia © Copyright Lex Mundi Ltd. 2013
incorporating a Colombian insurer, to offer in Colombia insurances in connection with
international maritime transport, international civil aviation and space launching (including
satellites). These insurances may cover the risks associated with goods being transported, the
vehicle and the liability arising from the transportation.

In addition, pursuant to Law 1450 of 2011, foreign insurance companies are currently allowed to
underwrite agricultural risks in the Colombian market. Such activity does not require
incorporation of an entity in Colombia. Only those insurers from abroad who are registered in the
Registry of Foreign Insurance Entities and Foreign Insurance Intermediaries of Agricultural
Insurance (RAISAX by its acronym in Spanish) are authorized to operate in the Colombian
market to offer the agricultural insurance.

A foreign reinsurer can underwrite reinsurance in our jurisdiction only by means of one of these
alternatives: (i) by registering at the Registry of Foreign Reinsurers and Reinsurance Brokers
(REACOEX by its acronym in Spanish) held by the Colombian regulator, (ii) by setting up a
representative office in Colombia and (iii) by incorporating a reinsurance company in Colombia.

3. Are insurers and/or reinsurers regulated in your jurisdiction?

Yes.

4. Are foreign insurers and/or reinsurers required to be licensed or registered to

underwrite and sell insurance/provide capacity in your jurisdiction?

Yes. As set forth in question 2, foreign insurers must be established and dully incorporated in
Colombia in order underwrite and sell insurance in Colombia.

However, pursuant to Law 1450 of 2011, foreign insurance companies are currently allowed to
underwrite agricultural risks in the Colombian market. Such activity does not require
incorporation of an entity in Colombia. Those foreign insurers pursuing to underwrite and sell
insurance related to agricultural risks, as it was explained in question 2, are required to be
registered in the RAISAX.

Additionally, from July 15th, 2013, due to liberalization measures in the insurance market,
foreign insurers will be entitled to offer in Colombia insurance in connection with international
maritime transport, international civil aviation and space launching (including satellites).
Pursuant to Law 1328 of 2009, the Superintendence of Finance (Colombian regulator) will
establish a compulsory registration of the insurance companies offering the above mentioned
insurance products.

A foreign reinsurer must be registered in the special registry held by the Colombian Regulator as
explained in question 2.

5. What is the applicable legislation or regulations governing insurers and/or reinsurers in

your jurisdiction?
Colombia © Copyright Lex Mundi Ltd. 2013
The main legislation or regulation applicable and governing insurers and/or reinsurers in our
jurisdiction are the Organic Statute of the Financial System (Estatuto Orgánico del Sistema
Financiero), the Decree 2555 of 2010, the Legal Circular 007 of 1996 and the Legal Circular 100
of 1995 from the Superintendence of Finance of Colombia.

Additionally, there is also a special regulation for foreign reinsurers pursuing to operate in our
jurisdiction. Although a reinsurer operation is not subject to any surveillance, Legal Circular 007
of 1996 (Title VI, chapter 4) sets forth the requirements for the registration in our country.

6. Is an unlicensed insurer or reinsurer entitled to sell insurance/provide capacity to sell

insurance in your jurisdiction?

No.

7. If an insurer and/or reinsurer is licensed and registered in another jurisdiction will that
be accepted for the purposes of licensing and registering in your jurisdiction?

Insurers:

No.

However, the foreign insurer who, after July 15th, 2013, will be able to offer in Colombia
insurances in connection with international maritime transport, international civil aviation and
space launching (including satellites), must be licensed and registered in another jurisdiction in
order to register in our jurisdiction as a foreign insurer.

In addition, the foreign insurers seeking registration in the Registry of Foreign Insurance Entities
and Foreign Insurance Intermediaries of Agricultural Insurance (RAISAX by its acronym in
Spanish) must be licensed and registered in another jurisdiction.

Reinsurer:

Yes, as a prerequisite, a reinsurer must be licensed in another jurisdiction for the purposes of
registering in the REACOEX as a foreign reinsurer.

8. Does the applicable regulator in your jurisdiction have a website? If so, what is the
website?

www.superfinanciera.gov.co

9. Are the forms to become licensed or registered in your jurisdiction available on the
regulator’s website?

Although, the relevant legislation and regulation are available, a specific form is not available at
the regulator’s website. However, at the regulator’s website is available the relevant check list
with respect to the documentation needed to become licensed or registered in our jurisdiction.