Brazil leads insurtech growth in Latin America
The country concentrates 32% of insurtechs in the Latin American region, with 129 companies in its territory, shows a study by Charles Taylor The insurtech sector continues to grow in Latin America. According to data published in the “Latam Insurtech Journey” study, there are currently more than 350 companies of this type in the region. Brazil leads the market with a 32% share, with 129 insurtechs.
For Gonzalo Geijo, Regional Sales Director at Charles Taylor, the sector’s growth is an indirect consequence of the pandemic. “Today, there is greater openness on the part of top executives, as the pandemic, in addition to changing their mindset by motivating them to reinvent ways to achieve results, led them to form teams with native digital talent, which facilitates adaptation new trends,” says Geijo. Brazil currently generates 57% of the sector’s total investment in Latin America. In 2020 alone, the investment grew 98% compared to the previous year. In total, since the beginning of insurtech activity in the region, around US$ 500 million have been invested. It is estimated that in the next three years this figure will reach US$ 1.5 billion.
The growth of the Insurtechs sector in Brazil is largely due to the increasing focus on new business models dedicated to services (54%). “The pandemic forced organizations to accelerate their digital transformation and implement digital channels. 2020 made us face a reality that we had not imagined and forced us to make decisions that, even considered correct, were often postponed. Without a doubt, the phrase ‘nothing will be the same after the pandemic’ gains greater relevance.
The winners will be those who make intensive use of technology and drive innovation,” adds Geijo. Currently, 351 companies of this type are registered in the region, of which only 6.6% are present in more than one market. Charles Taylor is certainly one of the companies that stand out in this field. After its arrival in Latin America in 2018, this British Insurtech, leader in the sector at an international level, has distinguished itself by offering a portfolio of innovative services, capable of adapting to the required solutions and which has a robust knowledge of market needs. “Charles Taylor focused on educating, seeding trending information and solutions.
Implementing your services will be a long-term project with payback. However, through its proven implementation methodology, the company will be able to start seeing results in 3 months, demonstrating that they are innovative and safe solutions”, concludes Geijo.