Insuretech companies are raising funds to expand their business in the Latin American embedded insurance market

Print

Email

Latin America is witnessing evolution in embedded health & life insurance technology by insurtech firms. The global coronavirus pandemic has propelled the demand for health insurance products in this region substantially. Looking at this growing demand for health insurance in the region, insurtech firms are improving their offerings to serve the health insurance segment in a better way. Furthermore, amid the insurtech boom in the region, firms are aggressively raising funds to scale their platforms and expand their list of partners in the healthcare industry. The firms are upgrading their offerings by adding new product features and technologies. For instance,

• In July 2021, Mexico-based insurtech Guros raised US$5.8 million in the new funding round, totaling the company’s valuation to US$30 million. Guros's funding round was led by F-Prime Capital, while Cometa with Clocktower and Insurify participated as contributors. The company aims to utilize the funds to improve its platform's capabilities, customize APIs for commercial partners across various sectors, enter the health insurance market, and expand internally across technology, product, and operations. 
• In September 2021, Brazilian insurtech firm Pier raised US$20 million in its Series B funding round. Currently, Pier is distributing insurance products by allowing consumers to access auto insurance cover using a smartphone. The company is expanding its foothold into newer segments with the newly raised funds, including life insurance.

Moreover, foreign insurtech firms and insurers are planning to expand their presence in the Latin American market with the growing traction of embedded insurance products in Latin American countries. Insurtech firms from different countries are making strategies to raise funds and enter the region to expand their client base. The entry of market players from other countries into the region will improve competitiveness while also bringing new technology and ideas to the region. For instance,

• In October 2021, the United States-based insurtech Sure raised US$100 million, totaling the company’s valuations to US$550 million. Sure is planning to utilize the newly raised funds to expand its geographical operation in various regions, including Latin America. The geographical expansion strategy is aimed towards increasing Sure’s client base.