Startup spotlight: Super.mx, the super transparent insurtech
Founded in 2019 and headquartered in Mexico City, Super.mx is the product of three insurance industry executives (Sebastian Villarreal, Dario Luna, and Marco Ahedo) who had a collective vision for better, fairer, and more transparent services than ever before.
Specifically, the trio wanted to appeal to Latin America’s burgeoning middle class through a tech-focused and intuitive digital platform. The founders’ individual skill sets lent themselves ideally to the task:
- Villarreal, CEO, holds a BSc in Physics from the University of Chicago (2009) and previously founded lending startup LendSquare and home cover insurtech Kin
- Luna, President, has held a number of executive roles within financial institutions, including Chief Economist at the National Banking and Securities Commission, Board Member of Principal Financial Group, and Managing Partner of Akuna Capital
- Ahedo has detailed risk management experience and been involved in the development of parametric insurance products in the Caribbean
Streamlining the claims process
What makes Super.mx different from its competitors is its commitment to optimising the claims management process.
Decrying the traditional industry’s use of adjusters to determine payouts, the insurtech creates insurance packages with highly transparent terms so that policyholders are aware of the required conditions for a successful claim. In the worst case scenario, it states, policyholders can expect a maximum of four or five such conditions.
Furthermore, the company explicitly refuses to use adjusters, “When you buy insurance from Super, you are buying insurance with the confidence and support of the most important insurers and reinsurers in the country and in the world.”
To this effect, Super.mx’s products are supported by “world-renowned insurers”, regulated by both the National Insurance and Surety Commission and CONDUSEF, and feature high-quality data encryption.
Increasing insurance uptake in Latin America
The company’s recent Series A funding round, which raised US$7.2mn and was led by ALLVP, is being touted as a big win in the mission to expand insurance consciousness in Mexico and around Latin America more broadly.
“People in Latin America buy a lot less insurance than they do in the US, and people in Mexico, in particular, buy a lot less insurance than they do in other Latin countries,” commented Villarreal.
However, according to him, the problem rests with the industry itself and not Mexican culture. “The problem is that the insurance products that exist in the market just suck. They’re super expensive. They’re really hard to buy, and they pay very little.”
With innovators like Super.mx working to resolve the industry’s long standing issues, it is becoming increasingly likely that Latin America will emerge as one of the world’s leading insurtech pioneers.
While Brazil remains the continent’s leading insurance hub, information compiled by MAPFRE (see our Top 10 Latin American insurance providers list) demonstrates that the field is being equalised year-on-year.
Image source: Super.mx
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.