After raising a BRL 15 million seed round, the auto insurance startup Justos debuts in Brazil with a business model that uses data to reward drivers who drive safely. This is how insurtech promises to modernize auto insurance and offer more competitive prices.
To start operating, Justos raised a seed round led by Kaszek and following by Big Bets, in addition to investors David Vélez, from Nubank, Sergio Furio, from Creditas, Patrick Sigrist, founder and former CEO of Ifood, Carlos Garcia, of Kavak, Assaf Wand, of Hippo Insurance, and Fritz Lanman, of Classpass.
Founded by the Indian Dhaval Chadha, the Mexican Jorge Soto Moreno and the Spanish Antonio Molins, who met in Silicon Valley and worked in companies such as Classpass, Netflix and Airbnb, Justos was born from the desire to undertake in Latin America. They researched segments and business models and concluded that the auto insurance market was ideal: high demand, since more than 70% of cars are uninsured, according to the partners, and a product lacking in innovation.
Justos has developed a technology that uses information about how users drive to set the insurance price. With an app installed on the driver’s cell phone, the startup is able to measure acceleration, braking, speeding and others and, based on this data, defines risk and pricing models based on the driver’s driving quality.
According to insurtech, it is able to offer plans up to 30% cheaper and give additional discounts each month based on the direction of the previous month.
Also, Justos will use artificial intelligence to analyze and process requests for new insurance, reducing the time to resolve claims. “We spent eight months studying possibilities, talking to people and investors in the United States, Brazil and Mexico, until we came up with the idea of creating an insurance company that can modernize the sector,” explains Chadha.
The insurance contract can be done by app, website or WhatsApp, but at the moment it is only possible to join a waiting list. The insurance sales begin later this year.