Super.mx, an Insurtech startup located in Mexico City has raised $7.2 Million in a Series B round led by ALLVP.Super.mx was founded in 2019 by three former executives from the insurance industry. CEO Sebastian Villarreal stated that their mission is to provide insurance to the emerging Latin American middle classes.He said that insurance that is simple to purchase can be purchased on a mobile phone in minutes. It also pays quickly without any adjusters. It has developed its offering using proprietary models that can be used on both the underwriting and claims sides to automatically make payments.Goodwater Capital, Kairos Angels, Bridge Partners and other angels participated in the Series A round. They included Joe Schmidt IV (vice president of business development at insurtech Ethos) and Kyle Nakatsuji (founder and CEO of Clearcover auto insurance startup, and also a former VC). Super.mxs $2.4 Million seed round was led by Better Tomorrow Ventures. It also received capital from 500 Startups Mexico and Village Global, Anthemis, Broadhaven Ventures, and others.Villarreal insists that Super.mx, unlike most other insurtech startups in Latin America emphasizes that it is neither an aggregator or a carrier. It is an MGA (managing general agent), instead.Villarreal stated that this allows us to have the best of both worlds. The entire user experience is handled just like a direct-to-consumer carrier but with the aggregator's wide product selection.This product range includes life, property, and natural disasters insurance. Soon, the company will expand to offer health insurance.The founding team has a diverse insurance experience. Villarreal was previously the co-founder of Kin Insurance, a Chicago-based insurance company. The company raised more than $150 million from QED Investors, Commerce Ventures, and Flourish Ventures. Avant was a growth stage company that was funded by General Atlantic, Tiger Global and others. He also served as the head of automobile product at Avant.Dario Luna has over 20 years of experience in the insurance industry. He was Mexico's first insurance regulator. Marco Ahedo is the author of parametric insurance products that have been sold in 19 Caribbean countries. He has also been a MetLife solvency expert on life and health insurance lines, and has created financial models for many P&C carriers.Villarreal spent a time in the U.S. before moving back to Mexico. He recognized that Mexico was home to an underinsured problem.He said that this is a serious problem. Latin Americans buy less insurance than those in the United States, and Mexicans in particular buy less insurance than other Latin countries.Many people blame the lack of coverage for the country's culture, but Super.mx believes this is total BS.Villarreal stated that it is not a cultural issue. Problem is, the insurance products on the market are just too expensive. They are extremely expensive. They are very expensive and difficult to purchase.Super.mx sold thousands of policies so far. However, the company is now more focused on expanding its product line. It started by selling earthquake insurance. Then it added COVID insurance and, more recently in April, life insurance. It will then offer health, property, and renters insurance.Villarreal stated that it is a very different strategy to what you'd find in the U.S. It seems like insurtechs do one thing. But here, it is very different. When someone says they want insurance, what they really mean is Hey, something happened to me that made me nervous.This could be, for instance, a new baby that leads to a need of life insurance.He said that we were trying to make Lemonade, Roots, Hippo, or Kin, all in one. It's a huge, big play.In recent years, digital adoption has increased in Mexico and Latin America. Villarreal says that the biggest obstacle to Super.mx's success is not technology but rather the difficulty of Mexicans overcoming a deep distrust based on past experiences.People can be very distrustful, which is a major hurdle. But once you show them that your approach is different, Villarreal explained to TechCrunch that you do things differently, they will feel a tremendous emotional response.Super.mx will eventually expand beyond Mexico to other Latin American countries.Federico Antoni, AllVPs Federico Antoni stated that his Mexico City-based company had been searching for this kind of team building for many years before investing in Super.mx. Venture firm was impressed by the company's industry knowledge and technical expertise. He was also impressed by their multi-product approach to shipping complex products quickly to the market, which is a unique feature in the region.Antoni cited statistics from MAPFRE Economics to show that the global insurance market has grown over the past 10 years. Latin America grew at an average 4.4% per year compared to 2.4% globally, but with greater volatility. This growth has been driven by 6.1% life insurance over that period.Insurtech could be bigger than fintech. He also said that it was more difficult, via email. To unlock market potential, the team would have to be highly skilled and disruptive.Antoni stated that he believes Insurtech will be the next frontier for financial inclusion in Latin America, especially with digitization continuing to grow.He said that providing risk coverage for individuals and businesses in the area brings financial stability to families, and unlocks economic potential to SMEs. The market is growing and the incumbents in insurance have not been able to meet it.
