First InsurTech Company of Brazil, Justos, Has Raised $35.8 Million in Series A Funding
Series A round led by Ribbit Capital has begotten $35.8 million funding for the first tech-insurance company, Justos, of Brazil.
Justos has aimed at revolutionizing the insurance industry. As proclaimed by the company, itself, Justos is a data-driven insurance company. The company uses technological solutions to overcome the loopholes in determining rates and other such problems. The idea and the purpose of the company have made it possible that the company could raise $35.8 million in Series A funding which was led by Ribbit Capital.
The Series A funding round was crowded with different existing and new investors. Among new investors, there were SoftBank’s Latin American Fund and GGV. However, existing investors Kaszek, BigBets, Nubank CEO David Velez, and Kavak CEO Carlos Garcia Ottati also joined the round.
The founders of the startup, Dhaval Chadha, Jorge Soto Moreno, and Antonio Molins, are serial entrepreneurs. And having experience working with different silicon valley based companies, the success of Justos was well justified. Silicon Valley-based companies include Netflix, Airbnb, and ClassPass.
Different insurance processes in Brazil are hard to proceed with, so the aim of Justos was to automate these processes. Because the pricing of insurance policies of individuals depends upon their way of driving. And this is a very subjective factor that varies from person to person. Therefore, Justos is using the same method as a U.S based company Root, to gather users’ data from their phones. This data will be used to efficiently and assertively price different types of risks.
Doing so, the startup believes that the plans it can offer will be 30% cheaper than the traditional plans along with monthly discounts. However, these discounts will depend on each customer’s previous month’s driving performance.
“We measure how safely people drive using the sensors on their cell phones, 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,” said the CEO, Chadha.
As per the gathered information, Justos plans to use its newly acquired capital to enhance its area of operations and launch other lines of insurance. As well as, the company has also agreed to support five NGOs, maintaining its good social component. These NGOs include instituto Ayrton Senna (education), AACD (disability), Gerando Falcões (economic opportunity), Casa 1 (LGBTQ), and Conexsus (sustainable development in the Amazon). Moreover, these NGOs will get the unused pay claims in donations from Justos.
As claims processing is a very slow process, Justos plans to use AI and Computer Vision to analyze and process claims more quickly. Moreover, machine learning algorithms will help in quick image analysis and creating bots to speed up the processes.
This has become an indisputable fact that technology has revolutionized the world completely. The inclusion of Data Science, AI, ML, and computer vision has further enhanced the capacity of technology. There is no denying the fact that Big data has become better data. Similarly, the role of AI and ML in mobile application development has further empowered mobile applications. From education to healthcare, the applications of AI are present at every level.