Chilean insurtech, Jooycar, has laid out its plans for 2020. Among them is one in which this startup wants to expand its customized car insurance services into the United States by the second half of next year. Likewise, it intends to raise a new investment round.
The insurtech had previously raised US$200,000 with Magma Partners in 2017. Followed by a US$3 million investment round led by HCS Capital Partners in October of 2018.
Beyond Chile, the startup’s services can currently be found in Mexico and Peru.
Customizing car insurance
Founders María Paz Gilletcha and Emilio Figueroa put their heads together and created Jooycar in 2014. This insurtech developed a business to business to consumer (B2B2C) platform that offers customized car insurance to companies and consumers.
In order to determine the insurance policy that will be laid out, Jooycar uses the Internet of Things (IoT) and Big Data via a device plugged into the cars and app.
Through this tech the platform studies the kilometers traveled in a vehicle, a person’s driving style, among other factors. After processing this information, the startup provides companies and consumers tailor-made insurance terms.
Thanks to Jooycar, insurers and car leasers benefit from a layer of greater information for decision-making rather than just relying on traditional insurance parameters such as the model, the driver’s age, etc.
Meanwhile, because of the flexibility it offers, Jooycar can be attractive to users who’ve never had car insurance before. It especially benefits those who are careful drivers but were wary of a policy due to budgetary reasons.
Moreover, the device attached to the car adds two benefits. First, it keeps users informed if the vehicle needs maintenance. And second, it advises on how they can improve their driving.
Protecting user’s data
What makes Jooycar so eye-catching is the amount of data that’s put into the system by the consumer: location, driving routes, etc. Consequently, it’d be important that users be well-aware of how their information is handled by both the startup and their insurance providers.
More so in a country like the US, where insurance companies have a bad rep for how they eat up data. Oftentimes by not-so ethical means.