Insurtech startups in Latin America have moved away from lead-generation strategies such as comparison sites, to concentrate efforts on making processes like claims handling within traditional insurance companies more efficient.
Latin American insurtechs are increasingly offering innovative technology and business models to traditional insurers – and moving away from a first wave of aggregator and comparison-based insurtech services. The shift comes as venture capital to the sector halted during the pandemic, after 10% insurtech investment growth year-on-year in 2019, according to data from Digital Insurance LatAm. Now, experts predict that insurtech investments will increase in the coming months, as startups experiment with artificial intelligence (AI) and on-demand products to open doors to new partners and clients. “There are big opportunities in 2021. Many funds from abroad are looking at Latin American insurtech companies, since it has been proven that there can be solid profits,” predicts Nicolas Iglesias, analyst at Latin America Insurance Fund (LAIF), a corporate venture capital fund.