Meet Justos, the new Brazilian insurtech that just got backing from the CEOs of 7 unicorns – TechCrunch

Meet Justos, the brand new Brazilian insurtech that simply acquired backing from the CEOs of seven unicorns – TechCrunch

Right here within the U.S. the idea of utilizing driver’s information to determine the price of auto insurance coverage premiums shouldn’t be a brand new one.

However in markets like Brazil, the thought remains to be thought-about comparatively novel. A brand new startup referred to as Justos claims will probably be the primary Brazilian insurer to make use of drivers’ information to reward those that drive safely by providing “fairer” costs.

And now Justos has raised about $2.8 million in a seed spherical led by Kaszek, one of many largest and most energetic VC companies in Latin America. Massive Bets additionally participated within the spherical together with the CEOs of seven unicorns together with Assaf Wand, CEO and co-founder of Hippo Insurance coverage; David Velez, founder and CEO of Nubank; Carlos Garcia, founder and CEO Kavak; Sergio Furio, founder and CEO of Creditas; Patrick Sigris, founding father of iFood and Fritz Lanman, CEO of ClassPass. Senior executives from Robinhood, Stripe, Smart, Carta and Capital One additionally put cash within the spherical.

Serial entrepreneurs Dhaval Chadha, Jorge Soto Moreno and Antonio Molins co-founded Justos, having most not too long ago labored at numerous Silicon Valley-based firms together with ClassPass, Netflix and Airbnb.

“While we have been friends for a while, it was a coincidence that all three of us were thinking about building something new in Latin America,” Chadha mentioned. “We spent two months studying possible paths, talking to people and investors in the United States, Brazil and Mexico, until we came up with the idea of creating an insurance company that can modernize the sector, starting with auto insurance.”

In the end, the trio determined that the auto insurance coverage market can be an excellent sector contemplating that in Brazil, an estimated greater than 70% of vehicles should not insured. 

The method to get insurance coverage within the nation, by any accounts, is a sluggish one. It takes as much as 72 hours to obtain preliminary protection and two weeks to obtain the ultimate insurance coverage coverage. Insurers additionally take their time in resolving claims associated to automobile damages and loss as a consequence of accidents, the entrepreneurs say. Additionally they cost that pricing is commonly not truthful or clear.

Justos goals to enhance the entire auto insurance coverage course of in Brazil by measuring the best way individuals drive to assist value their insurance coverage insurance policies. Much like Root right here within the U.S., Justos intends to gather customers’ information by way of their cell phones in order that it will possibly “more accurately and assertively price different types of risk.” This fashion, the startup claims it will possibly supply plans  which can be as much as 30% cheaper than conventional plans, and grant reductions every month, in keeping with the driving patterns of the earlier month of every buyer. 

“We measure how safely people drive using the sensors on their cell phones,” Chadha mentioned. “This allows us to offer cheaper insurance to users who drive well, thereby reducing biases that are inherent in the pricing models used by traditional insurance companies.”

Justos additionally plans to make use of synthetic intelligence and computerized imaginative and prescient to investigate and course of claims extra rapidly and machine studying for picture evaluation and to create bots that assist speed up claims processing. 

“We are building a design driven, mobile first and customer experience that aims to revolutionize insurance in Brazil, similar to what Nubank did with banking,” Chadha advised TechCrunch. “We will be eliminating any hidden fees, a lot of the small text and insurance specific jargon that is very confusing for customers.”

Justos will supply its product on to its prospects in addition to by way of distribution channels like banks and brokers.

“By going direct to consumer, we are able to acquire users cheaper than our competitors and give back the savings to our users in the form of cheaper prices,” Chadha mentioned.

Clients will have the ability to purchase insurance coverage by way of Justos’ app, web site, and even WhatsApp. For now, the corporate is just including potential prospects to a waitlist however plans to start promoting insurance policies later this 12 months..

Through the pandemic, the auto insurance coverage sector in Brazil declined by 1%, in keeping with Chadha, who believes that signifies “there is latent demand rearing to go once things open up again.”

Justos has a social good element as properly. Justos intends to cap its earnings and provides any leftover income again to nonprofit organizations.

The corporate additionally has an bold objective: to assist make insurance coverage turn out to be universally accessible around the globe and the roads safer typically.

“People will face everyday risks with a greater sense of safety and adventure. Road accidents will reduce drastically as a result of incentives for safer driving, and the streets will be safer,” Chadha mentioned. “People, rather than profits, will become the focus of the insurance industry.”

Justos plans to make use of its new capital to arrange operations, similar to forming partnerships with reinsurers and an insurance coverage firm for fronting, since it’s beginning as an MGA (managing normal agent).

It’s additionally engaged on constructing out its merchandise similar to apps, its again finish and inside operations instruments in addition to designing all its processes for underwriting, claims and finance. Justos’ information science group can be constructing out its personal pricing mannequin. 

The startup might be targeted on Brazil, with plans to ultimately develop inside Latin America, then Iberia and Asia.

Kaszek’s Andy Younger mentioned his agency was impressed by the group’s earlier expertise and keenness for what they’re constructing.

“It’s a huge space, ripe for innovation and this is the type of team that can take it to the next level,” Younger advised TechCrunch. “The team has taken an approach to building an insurance platform that blends being consumer centric and data driven to produce something that is not only cheaper and rewards safety but as the brand implies in Portuguese, is fairer.”

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