The concept of using driver data to determine the price of auto insurance premiums in the United States is not new. In a market like Brazil, however, the concept is still considered relatively novel. A new startup called Justos claims it will be the first Brazilian insurer to use driver data to reward those who drive safely with a “brier” price offer. And now Justos has raised about $2.8 million in a seed rain led by Kaszek, one of the largest and most active VCs in Latin America.
Big Bates took part in this round, including CEO of Hippo Insurance and CEO of seven Unicorns, including co-founder Assaf Wand; David Village, founder and CEO of Nubank; Carlos Garcia, founder and CEO of Kavak; Sergio Furio, founder and CEO of Creditas; Patrick Sigrist, founder of iFood, and Fritz Lanman, CEO of ClassPass. (There is a seventh CEO who wants to remain anonymous) Senior executives from Robinhood, Stripe, Wise, Carta and Capital One also make money in this round. Serial entrepreneurs Dhaval Chad, co-founded by Jorge Soto Moreno and Antonio Molins Justos, have recently worked with various Silicon Valley-based organizations, including ClassPass, Netflix and Airbnb.
“When we were friends for a while, it was a coincidence that the three of us were thinking about building something new in Latin America.” “We’ve been studying the potential path for two months, talking to people and investors in the United States, Brazil and Mexico, until we create an insurance company that can modernize the sector, not start with ideas, start with auto insurance.” In the end, the trio decided that the auto insurance market would be considered an ideal field in that in Brazil, an estimated 70% of cars were not insured.
The process of getting insurance by any insurance in the country is slow. It takes 72 hours and two weeks to get the initial coverage to take the final insurance policy. Entrepreneurs say insurance victims take their time to resolve claims related to car damage and damage caused by accidents. They further charge that prices are often not fair or transparent.