To talk about insurance in Latin America is quite a challenge because there is no culture of insurance in the continent. Conversely to the US or Europe, to buy an insurance policy is more an obligation than a natural preventive action. With this reality, the insurtech has the mission to change the mentalities of the Latino-American people showing the value of an insurance policy for a fair price Brazil, the most developed Fintech landscape of Latin America has shown an interesting evolution of how the insurtechs are evolving themselves.
The Insurtech movement started with online marketplaces of insurance policies since 2011 with actors as Minuto Seguro and Bidu. Since then, the demand has increased exponentially because insurtechs had appealing prices and an available and helpful customer service. We mentioned before that Latino-Americans are not active consumers of insurance services. So, even if the purchase of policies is done online, the contact with the customer service is important to reassure customers about the service acquired. Since 2016, some disruption emerged in the insurance market. We have for example, ToGarantido, a broker of micro-insurance that targets the low income class using online and offline channels. This is an example of insurance for inclusion. Then, we have Youse, an insurtech focused on millennials who can build and purchase their own insurance service with an app. The insurtech also plans to use no intermediaries to sell its services but this point is still under review with the regulator. To foster the Brazilian ecosystem, the largest local insurance company decided to play a key role supporting innovation. Recently, Porto Seguro made a deal with Orange consulting to dig more on the Internet of Thing experience. Porto Seguro also created Oxigenio, an accelerator program to monitor and do partnerships with local insurtechs. Insurtechs are giving to the insurance market a new face that can convince Latino-Americans to finally bet on and trust the sector.
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