COLOMBIA Law and Practice Contributed by: Rebeca Herrera Diaz, Rebeca Herrera Abogados
1. Basis of Insurance and Reinsurance Law 1.1 Sources of Insurance and Reinsurance Law The sources of insurance and reinsurance law in Colombia are: • The Code of Commerce (C. Com) (Articles 1036 to 1162) regulates insurance and reinsurance contracts and provides rules for specific business lines. • The Financial System Organic Statute (EOSF) provides the regulatory framework for insurance market participants (insurance and reinsurance companies and intermediaries). • The Unique Decree of the Financial System, Decree 2555 of 2010 (D. 2555), develops the regulatory framework provided in the EOSF and specifically regulates prudential, corporate, and operational aspects of insurance market participants. • Other important sources are the Basic Legal Circu- lar of the Financial Superintendence of Colombia (SFC), and External Circular 006 of 2025 (CBJ). Over the 33 years since the promulgation of the new constitution, Colombian law has been increasingly shaped by case law, with judicial precedent becoming a more significant source of legal authority. In particu- lar, decisions of the Constitutional Court are gener- ally binding when determining the constitutionality of legislation and when safeguarding fundamental rights (through the Acción de Tutela mechanism). In civil and administrative matters, judicial decisions must be fol- lowed when they are recognised as doctrina probable . 2. Regulation of Insurance and Reinsurance 2.1 Insurance and Reinsurance Regulatory Bodies and Legislative Guidance Guidance The Colombian President must regulate and supervise insurance and reinsurance activity because Article 335 of the Colombian Constitution establishes that these activities are of public interest. That is why, in terms of regulation, the President undertakes the regulation
of these activities through the Ministry of Finance ( Ministerio de Hacienda y Crédito Público ) with the support of the Financial Regulation Agency ( Unidad de Regulación Financiera ), which is an administra- tive agency that researches and drafts the decrees. The decrees issued by the Ministry of Finance, which the President signs, serve to develop in greater detail the laws enacted by Congress, which define the legal framework for the insurance and reinsurance industry. Regarding the supervision of these activities, the Pres- ident assigns such function to the Financial Superin- tendence of Colombia ( Superintendencia Financiera de Colombia , SFC). In summary, the legal framework is contained in the Financial System Organic Statute (EOSF), and the regulator’s decrees are all included in D.2555. The instructions the SFC gives to the entities under its surveillance are contained in the Basic Legal Circular ( Circular Básica Jurídica , CE 006 of 2025, CBJ) and the Basic Financial Circular ( Circular Básica Contable y Financiera , CE 100 de 1993), the latter, pending modification and reissue. Colombia is a member of the International Associa- tion of Insurance Supervisors. Accordingly, Colombian regulation follows all its guidelines, specifically regard- ing prudential supervision, market conduct, corporate governance, and risk management. The legal framework governing insurance contracts and their detailed regulation is established in Articles 1036 to 1162 of the Code of Commerce (C.Com), with any modifications being the responsibility of Con- gress. 2.2 Writing of Insurance and Reinsurance Articles 61 to 65 of Law 1328 of 2009 provide that insurance companies domiciled in Colombia and under the supervision of the SFC are entitled to under- write insurance in Colombia. In exceptional cases, foreign insurers offering international and commercial marine and aviation insurance, including insurance for merchandise in international transit, and insurers offering satellite insurance, are allowed to underwrite insurance in Colombia from abroad, on a cross-border basis, provided they are registered in the Registry of
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