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Contxto – Startups in the insurance sector continue to take the spotlight. Last week, Kaszek Ventures and Monashees co-led a seed investment for US$4.6 million in insurtech Pipo Saúde. Other participants included ONEVC and angel investors including Nubank CEO, David Vélez.
Thanks to the investment, Pipo Saúde will expand throughout its native Brazil. Hopefully through this growth, more businesses will benefit from the startup’s AI tech to find the health insurance plan that best fits employees’ needs.
Health insurance in Brazil needed
In Latin America, startups working with flexible insurance products have been investors’ darlings lately. Earlier this month, Mexican Zenda.la and Chilean Jooycar both announced they’d raised equity capital.
Rightly so, people do need insurance in case of an emergency.
However, there’s a growing need for coverage flexibility as opposed to being boxed into a plan. Startups can fill this gap and connect insurance companies with individuals and businesses to find the plan that best matches their budget and lifestyle.
In Pipo Saúde’s case, something investors and companies can appreciate is how the startup addresses healthcare in a proactive way. Rather than waiting for a person to wind up at the hospital, Pipo Saúde wants to promote preventive healthcare among employees.
It’s better for them and it saves companies money. Everyone wins.
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Health insurance by the numbers: In 2019, around 24 percent of the population in Brazil was enrolled in a private healthcare plan. Considering the size of its population, there’s certainly more ground for insurers to cover. But it’s not gonna be easy.
The country’s high levels of informal employment represent a significant obstacle. It may be up to startups to bridge insurance companies with these workers who have a limited budget and/or don’t see the need to spend on insurance.
Moreover, the coronavirus pandemic will push more people into understanding their exposure not only to the disease, but to hefty hospital bills. As a result, they may start exploring their options.
Though the more adaptable the alternatives, the better.
Wanna hear more? We recommend you listen to the following podcast episode: El imparable Kaszek Ventures. You can find the time stamp available in the description.
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