In Brazil, and in other countries in
the region, the insurance market is underdeveloped and highly concentrated. The
Latin American insurance market is estimated to have a penetration of around 3
or 4% of Gross Domestic Product, compared to 8% in other countries. This means
that relatively few people have their assets insured, either because of the
high price or the bureaucracy, but at the same time it represents a market
opportunity, according to Lucas Prado, a business engineer from the University
of Campinas. According to the Global Insurance Potential Index prepared by
Fundación MAPFRE, Brazil is the ninth country in the world for growth potential
in this market.
In 2018, there was no digital
insurer market in Brazil. That year Lucas Prado, along with his partners Igor
Mascarengas and Rafael Oliveira, saw the opportunity to found their insurance
company Pier, which offers automobile and vehicle insurance with a digital
experience assisted by artificial intelligence. It advertises itself as
"uncomplicated insurance with instant reimbursement." This insurtech
is the first digital insurer in Brazil and has earned Prado an award as one of
the winners of MIT Technology Review's Innovators Under 35 Latin America 2023
in Spanish.
"Through Pier we democratize
insurance to make a better society and increase economic activity. Our
artificial intelligence-based technology allows us to offer very attractive
prices and a delightful experience. From this technology we have designed
PierBolt, an anti-fraud system that allows instant refunds to our
customers," details its creator. The company shortens the time and steps
to get insurance and allows the cancellation of its monthly policies with just
two clicks without charging a penalty to the user.
Prado believes that insurance
increases financial freedom and facilitates a calmer life by protecting people
from financial loss. "By making insurance accessible to as many people as
possible, through fair prices and satisfactory user experiences, Pier protects
more people against risks, allowing them to focus on their personal and
professional projects without worrying about losses that could be avoided with
insurance," adds the engineer.
In Brazil, Pier has more than
120,000 clients and invoices US$30 million a year. In the future, Prado expects
to expand its product range beyond automobile and vehicle insurance, becoming an
insurance platform and expanding the security that Pier brings to its clients.
