Super.mx: Mexico City Insurtech Raises $7.2M

Super.mx Secures $7.2 Million Series A Funding

Super.mx, a Mexico City-based insurtech company, has successfully completed a $7.2 million Series A funding round. The investment was spearheaded by ALLVP.

Company Origins and Mission

Established in 2019, Super.mx was co-founded by three experienced professionals from the insurance sector. According to CEO Sebastian Villarreal, the company’s core objective is to create insurance solutions tailored for “the emerging Latin American middle class.”

Villarreal explained that their approach centers on providing insurance that is easily accessible – obtainable via mobile devices in a matter of minutes – and offers swift claim payouts without the need for traditional adjusters. The company utilizes proprietary models for both risk assessment during underwriting and automated claim processing.

Investors in the Round

In addition to ALLVP, the Series A round saw participation from Goodwater Capital, Kairos Angels, and Bridge Partners. Angel investors included Joe Schmidt IV, VP of Business Development at Ethos and former Accel investor, and Kyle Nakatsuji, founder and CEO of Clearcover, also a former venture capitalist.

Previously, Better Tomorrow Ventures led Super.mx’s $2.4 million seed round, with contributions from 500 Startups Mexico, Village Global, Anthemis, and Broadhaven Ventures, among others.

Business Model: MGA Approach

Villarreal clarifies that Super.mx distinguishes itself from many Latin American insurtechs by operating as a Managing General Agent (MGA), rather than an aggregator or a direct carrier.

“This allows us to combine the advantages of both approaches,” Villarreal stated. “We control the complete user experience, similar to a direct-to-consumer insurer, while maintaining the diverse product selection of an aggregator.”

Product Offerings and Expansion Plans

Currently, Super.mx offers insurance products covering property, natural disasters, and life insurance. The company intends to broaden its portfolio to include health insurance in the near future.

Founding Team Expertise

The Super.mx team possesses extensive experience within the insurance industry. Villarreal previously co-founded Kin Insurance, a company that secured over $150 million in funding. He also held the position of Head of Auto Product at Avant, a growth-stage firm backed by General Atlantic and Tiger Global.

Dario Luna, with over two decades of insurance experience, formerly served as Mexico’s insurance regulator and played a key role in developing the nation’s disaster risk management strategy. Marco Ahedo has designed parametric insurance products for 19 Caribbean nations and previously worked as a solvency expert for MetLife, developing financial models for P&C carriers.

Addressing Underinsurance in Latin America

Villarreal returned to Mexico after living in the U.S., recognizing a significant “underinsurance problem” within the country.

He noted that insurance penetration rates are considerably lower in Latin America, and particularly in Mexico, compared to the United States and other Latin American nations.

Challenging Conventional Wisdom

While some attribute the low insurance coverage to cultural factors, Super.mx firmly believes this assessment is inaccurate.

“The issue isn’t cultural,” Villarreal asserted. “The existing insurance products are simply inadequate – they are expensive, difficult to purchase, and provide limited coverage.”

Sales and Future Strategy

To date, Super.mx has sold “thousands of policies” and is now prioritizing the expansion of its product range. The company began with earthquake insurance, followed by COVID insurance, and recently launched life insurance in April. Plans include offering property, renter’s, and health insurance.

Villarreal highlighted a different strategy compared to the U.S. market. “In the U.S., insurtechs often specialize in a single area, but here, the need is broader. When someone seeks insurance, they’re responding to a new source of concern.”

For example, the birth of a child often triggers the need for life insurance.

“Our ambition is to emulate the models of Lemonade, Roots, Hippo, and Kin, all integrated into one platform,” he added. “It’s a substantial undertaking.”

Overcoming Distrust and Digital Adoption

Digital adoption in Mexico and Latin America has seen rapid growth in recent years. However, Villarreal believes the primary challenge for Super.mx lies in overcoming a “deep mistrust” among Mexicans stemming from past negative experiences.

“Building trust is crucial,” Villarreal explained. “Once we demonstrate a different approach, we receive a remarkable positive response.”

Super.mx intends to expand its operations beyond Mexico to other countries within Latin America.

Investor Perspective

Federico Antoni of ALLVP stated that his firm had been actively seeking a team in this space “for years” before investing in Super.mx. ALLVP was impressed by the company’s technical capabilities and industry knowledge, as well as its multi-product strategy and “ability to rapidly deliver complex products to market,” which Antoni considers unique in the region.

Antoni cited statistics from MAPFRE Economics, indicating that the global insurance market has grown over the past decade, with Latin America experiencing faster expansion (4.4% vs. 2.4% worldwide), although with greater volatility. Life insurance has been a key driver of this growth, at 6.1%.

“Insurtech has the potential to be even more impactful than fintech, though it also presents greater challenges,” Antoni said. “We recognized that unlocking the market’s potential required a highly skilled and disruptive team.”

Antoni also believes that Insurtech represents the “next frontier” in financial inclusion in Latin America, particularly as digitization continues to increase.

“Providing risk coverage to individuals and businesses in the region fosters financial stability for families and unlocks economic opportunities for SMEs,” he said. “Furthermore, traditional insurance companies have been unable to adequately serve a growing and underserved market.”