“My Compa” seeks to increase insurance penetration in Mexico

In Mexico, 70% of the cars that circulate do not have insurance, of these there is a majority that does not take out a policy due to various factors, among which are an underbanked population as well as a disconnected supply of its users, who are they face contracts with difficult to understand terms.

“There is an unbanked population and many times to buy insurance for months you need a credit card, and more than half of the country does not have a card,” Álvaro Madrigal, director and co-founder of My friend, a platform that acts as a broker whose objective is to increase the penetration of auto insurance in low-income people.

Understand the reality of the country, necessary

Madrigal commented that financial institutions and insurers do not understand the reality of Mexico, as an example he mentioned that some multi-traders do not cover vehicles older than 14 years, contrary to what My friend makes.

The vehicle fleet in Mexico is between 14 and 15 years old; 14 years is the average vehicle age in Mexico ”, he added.

The broker is responsible for insuring any car regardless of the year, in which a card is not required and payments can be made in cash on a weekly, biweekly or monthly basis.

“Until 95% of customers pay in cash at Oxxo, they do not need a card to sign up (…) much of the economy of Mexico moves by week, “he emphasized.

The manager of My friend highlighted that currently They have 3,000 active clients paying month to month, of which they expect to have 100,000 “compas” (the way the broker calls its clients), during 2022.

Among the insurers with which they currently have an alliance, Álvaro Madrigal commented that they work with Qualites, The Latino, Ana Insurance, Chubb and the insurtech crab.

The manager mentioned that among the objectives of My friend it is putting insurers to compete to provide better offers to their clients without diluting demand.

Technology, your right arm

The manager added that one of the advantages that characterizes My friend lies in technology such as artificial intelligence and machine learning, both of which are adapted in your chatbot Pamela, who guides the broker’s clients and accompanies those who contract their insurance.

“We started campaigning and realized that the entire potential mass market is in social networks (…) What do we do? Via Messenger or Whatsapp We do not remove the client from the channel, all the transaction we do is on social networks, Pamela is based on machine learning ”, highlighted Madrigal.