The reality of InsurTechs in Brazil v the rest of Latin America
Digital Insurance LatAm is the first strategy consulting firm specialized in innovation and digital transformation. Digital Insurance LatAm conducted an in-depth study of the reality of the insurtech ecosystem in Latin America that included 281 Insurtechs in the region. The insurtech ecosystem in LatAm grew 29% in the last year and represents about 10% of the world.
The study reveals that 37% of the Insurtechs in the region are located in Brazil, a country that has at least 100 startups in this ecosystem. Many of these Insurtechs have innovative value propositions that do not exist in other markets. However, there are few Brazilian Insurtechs outside the country, unlike what has happened with other companies of this type in Latin America, which have already managed to transcend borders to other countries.
Looking in more detail at the Brazilian ecosystem, 6% are Insurtechs seeking to challenge traditional business models. For example, we can mention Thinkseg with its telematics solution or OnSurance with its “Pay When You Drive” model. Also, it’s worth mentioning that there are 2 peer to peer insurance models on this list: Mutual.life and Komus
On the other hand, 38% of insurtech seek to disrupt distribution models. There are many online brokers (as in other markets), on occasions, they are traditional brokers that develop Insurtechs solutions to innovate their operation. Now, the interesting thing is to see solutions similar to US MGAs with ad-hoc products, or 100% digital insurers such as Kakau or Pier. There is a very interesting model that is the Insurtechs of niches like BemMaisSeguro or Pitzi offering insurance to cell phones.
Finally, the remaining 56% have collaborative models because they are part of the insurance value chain and work with insurers or intermediaries. This third pillar is very interesting because they have new proposals. For example, there is Dualk that uses “gamification” to commercialize financial products or Jurimetria that has a solution to minimize costs in the analysis of judicial processes. Likewise, there is a large part that provides solutions for brokers.
An interesting fact to take into account is the number of service Insurtechs in this region (56%) compared to the average Latin American ecosystem (33%). This allows us to verify that the focus of the Brazilian Insurtechs is aimed at solving small and well-defined “pains”.
Although Brazil (37% of the total Insurtechs) and Mexico (20% of the total Insurtechs with companies like Crabi and Zenda.la) are the two largest ecosystems with potential to expand outside their borders, as of today, they have not done it. However, there are other markets such as Argentina (18% of the total Insurtechs) that already have multilatinas companies such as 123seguro.com and locals such as Iunigo and MeCubro. There is also Chile (11% of the total Insurtechs) with multilatinas like JooyCar and well-positioned locals like BurnToGive and Klare. For its part, the Colombian ecosystem, which today represents 8% of the region’s total, is the one with the highest growth potential with companies such as WeSura, Sekure, Busqo, and Softseguros.
The region is growing and there are more and more companies trying to innovate the insurance market, so creating a map of all the Insurtech was a necessity, hence the idea of creating “RADARS” that really understands the totality and reality of the Insurtech ecosystem in Latin America.
The objective of the “RADARS” is to spread these companies so that they can do business with large insurance companies and intermediaries and accelerate innovation and transformation of the sector. Thus, as well as demonstrating that the Latin American insurtech ecosystem is significant and that there are opportunities for Insurtechs outside of Latin America to reach the region or for local Insurtechs to obtain business and financing abroad. Finally, have a homogeneous definition in all countries, understand the particularities of each country, and discover the existing opportunities.
These radars are available on the website www.digitalinsurance.lat and / or on Digital Insurance LatAm.
The insurtech ecosystem can be discovered on the YouTube channel: “Digital Insurance LatAm“ a 100% collaborative space with the sole purpose of connecting Insurtechs with the insurance sector. They publish daily content from all the Insurtechs throughout the continent, feel free to be friends with Digital Insurance LatAm and send them your material to [email protected] Latin America has never been so close!