This post is also available in: Español (Spanish) Contxto – As part of a strategic move to consolidate 123Seguro as the largest insurtech company in the region, the company has reached yet another frontier. Born in Argentina, and following its Colombian expansion, the company has now arrived in Chile. With renowned backers such as MercadoLibre, the company is positioning itself as the first Argentine insurance broker to go international. Due to its startup nature, the company has recently managed to double its team. With this, it also opened offices in the three countries where it now operates. “The short-term objective is to efficiently interpret and better understand the requirements of users in Chile,” said Martín Ferrari, co-founder and CEO of the company, to iProUP. “As well as strengthen our ability to respond to customers in terms of quality advice and distribution of online insurance policies. In turn, we aim to consolidate the local team and expand 123Seguro’s human talent in Chile.” Compared to the regional average, the insurance market is better positioned and consolidated in Chile. This is especially due to its positive macroeconomic traits. While insurance primes reportedly average 2.9 percent of the GDP, in Chile it is almost double, reaching 5 percent. This is logical considering the country’s overall development: stable macroeconomic indexes, positive fiscal accounts and economic openness. “Being an economy in full development, it is logical that insurance responds dynamically to that reality,” said Ferrari. “Chile doesn’t only have more coverage in terms of quantity but quality as well.” Now, it seems like the company is in fact thriving. “In all of the markets we operate, we have strong growth indexes,” said the founder. While we’re not sure what this means, we know that 123Seguro is working hand-in-hand with over 30 insurance agencies across the three countries, especially in Colombia. “In the Colombian market, eight months ago we have been growing very strong in orders greater than 200% year-on-year,” said Carlos Bouquet, commercial manager of 123Seguro. “Within Argentina, we are experiencing our greatest year of growth, breaking sale records every quarter. In Chile, a few hours after being online, we have already generated our first clients, leveraging our offer with agreements with seven local insurers.” Although it seems like it’s certainly growing, 123Seguro also some a rockstar entrepreneur side. Back in 2018, the company was chosen among the 100 most innovative Insurtech startups worldwide. This year, the startup launched a joint-product with Zurich so users can obtain life insurances online. Also in Chile, the company’s auto insurance is now available, too. The company previously raised a US$3 million round in 2017. MercadoLibre’s MeLi Fund, NXTP Labs and Alaya Capital Partners are some of their cap table joiners. -VC
Argentine insurtech 123Seguro is spreading its business to Chile. Following a successful expansion into Colombia where its user base has grown 200% over 2017, the start-up aims to take advantage of Chile's evolving economy. Notably, insurance premiums in the South American nation account for 5% of GDP, far higher than regional average of 2.9%. Having recently doubled its workforce, 123Seguro intends to grow its number of employees in Chile to bolster communication with customers and to better understand their needs.