1. Jornada Colombiana – How to do business in Colombia University of St
Jornada Colombiana – How to do business in Colombia University of St. Gallen, 28th March, The perception of the Colombian legal system by foreign companies. The special case of insurance law and practice. Claudia Challand

2. Why is insurance relevant for economic growth?
Indicator of economic performance
Supports development of key sectors
Protects financial standing of developer
Provides cover for NATCAT events
Jornada Colombiana - How to do business in Colombia | University of St Gallen March 28th, 2017 2

3. Insurance contribution to Colombia’s growth 4G infrastructure expansion program Insurance cover is required by ANI and foreign banks
Surety Bonds – delays / advance payments
Civil Works – physical damages
Third Party Liability
Insurers may also play an active role during the project

4. Foreign presence in the Colombian insurance market - Open market for international companies New players increasing significantly - Current market share of 63% and growing

5. Foreign presence in the Colombian insurance market
Sophisticated insurance market
Regulator focused on solvency and liquidity of players
General economic growth over the past decade and promising
Steady increase of premiums
Attractive market for global insurers looking for profitability

6. Other factors contributing to insurance sector’s grown
I. Sound legal framework -Commercial Code, 1971 (Section 4, Title V) – governs insurance contracts -English Insurance law recently codified - now mirrors Colombian legislation Insurance Act 2015 & Enterprise Act 2016
Insurer has a duty to pay indemnity within time frame/or penalty interests
Graded remedies upon unfair presentation of the risk by the insured
Contract no longer avoided for breach of warranty if it is unrelated to loss

7. II. Alternative Dispute Resolution Mechanisms/ADR
Developed domestic & international arbitration
Required for complex disputes where specialisation is needed
List of national arbitrators appointed also internationally
Convenient venue
Modern and comfortable facilities for parties and arbitrators

8. III. Tackling challenges in the judicial system
Concerns from the Ibero-american Court of Human Rights
Congestion of court rooms & lengthy proceedings
Now - with adoption of oral procedural system
Hearings suspended only twice
Parties closer to the judge
No revision of lengthy pleadings
Agility
Challenges
Training
Ensure proper consideration of arguments and evidence
Continuing investment in systems and infrastructure

9. Swiss Re CorSo in Colombia - CorSo – direct insurance arm of Swiss Re Group - Acquisition of a majority stake holding in Confianza Seguros - Long standing insurer in infrastructure and public sector branches fostering penetration - Combined capabilities and expertise Commitment to Cover Public Sectors’ Risk -Contingent liability coverage – funds to citizens in case of NATCAT events -Publi-Private sector partnerships to cover natural risks – discussed at COP21 in Paris -Swiss Re is on track in aid to sovereign nations

10. Conclusions
Colombia left behind negative image with foreign investors operating in the insurance sector
Infrastructure projects and significant investments in mining and energy are supported by global insurers with a promising outlook
Sound and transparent legal framework; measures adopted to foster ADR mechanisms and improvement in the judicial system contribute to growth
Swiss Re has a permanent commitment to the country

12. Legal notice
©2017 Swiss Re. All rights reserved. You are not permitted to create any modifications or derivative works of this presentation or to use it for commercial or other public purposes without the prior written permission of Swiss Re.
The information and opinions contained in the presentation are provided as at the date of the presentation and are subject to change without notice. Although the information used was taken from reliable sources, Swiss Re does not accept any responsibility for the accuracy or comprehensiveness of the details given. All liability for the accuracy and completeness thereof or for any damage or loss resulting from the use of the information contained in this presentation is expressly excluded. Under no circumstances shall Swiss Re or its Group companies be liable for any financial or consequential loss relating to this presentation.