Auto insurance

Sigo Seguros aims to reduce bias with Hispanic car insurance platform

The co-founders of Sigo Seguros, pictured left to right, are Ivan Arambula, vice president of engineering; CEO Nestor Solari; and COO Julio Erdos. | Photo: Sigo Seguros

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Nestor Solari was helping his aunt manage her personal budget when he was surprised by how much she was paying for her car insurance.

“It was the beginning of my familiarity with the difficulty for working-class immigrants to have access to auto insurance,” said Solari, the son of Uruguayan immigrants.

In 2019, he co-founded Sigo Seguros, which he says is the only insurance company in the United States that can digitally onboard Spanish-speaking customers. The mobile platform is designed to overcome some of the challenges immigrants may face, such as not having a credit score or a U.S. driver’s license.

Sigo Seguros was launched last year in Texas, which remains its only market for now. The platform has already attracted thousands of customers and seven-figure bounties, Solari said.

We are the first company able to understand Spanish speakers from click to sale to complaint. Whereas today there is a bend in that funnel between physical agents and carriers, so the data is not unified. »

According to Solari, most physical insurance agencies consider credit score, level of education and type of employment as factors in their insurance underwriting. These factors generate higher premiums for immigrant clients like Solari’s father, who came to the United States without a driver’s license, college education and credit score.

“He was literally the safest guy I’ve ever met on the road,” Solari said. “He never wanted to get arrested. He paid every bill. That’s exactly the type of risk we would want to insure.

Sigo Seguros always assesses the risk, but he takes into account other factors, such as age, gender, marital status, driver class and type of vehicle.

“As we go through it, we’re largely looking for clean driving records,” Solari said. “Getting people with clean driving records who otherwise couldn’t buy insurance online is especially [demographic] slice that really interests us.

He said there was a “huge gap” of Spanish-speaking drivers who may have started the process of buying insurance online but couldn’t close the deal with other companies because their website or their app did not accommodate Spanish speakers. The Sigo Seguros platform is powered by a logic engine that helps automate the underwriting process, which Solari says eliminates some of the costs incurred by physical insurance agencies.

“Our clients, on average, will save between $250 and $500 per year compared to some of these other options where you have to pay a down payment or upfront brokerage fees,” he said.

Sigo Seguros’ technology also uses data to better understand its customers and develop a more sophisticated marketing strategy.

“We are the first company that can understand Spanish speakers from click to sale to complaint,” Solari said. “While today there’s a bend in that funnel from physical agents to carriers, so the data isn’t unified.”

The 30-person company raised $6.9 million in seed funding, including a $5.4 million round in February. Sigo Seguros plans to expand into another market in the first half of next year.

Solari said he hopes to continue offering auto insurance to several other states and eventually branch out into other forms of insurance.

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