Monday, 17 January 2022 02:43

Sostengo raises US$1.5 million in its pre-seed round to offer smart car insurance

Written by Evelyn Alas

Sostengo, an innovative salvadoran insurance company, raised US$1.5 million in investment funds (local and foreign), in its series known as pre seed, in order to offer accessible insurance to the underserved market in Central America, where it is estimated (according to 2019 data from the Swiss RE Institute / MAPFRE Economic Research) that around 75% of people in the region do not have insurance in any of its modalities.

This is precisely what Sostengo wants to focus on: offering inclusion to people in need and thus providing resilience to the Central American region.

Always thinking of the customer first and offering products at fair and accessible prices.

Sostengo recently presented its mobile application in El Salvador, which is the first end to end App in the country, offering smartphone users the possibility to carry out the entire process of quoting, customization, acquisition and management of vehicle insurance through the same application.

Sostengo is there to provide ease, accessibility and transparency to users. "It is a breakthrough in the region, by facilitating an end to end platform term that refers to the fact that, in addition to providing this solution, Sostengo will be present in all phases in which its customers interact with the App, with the intention of making it much easier for users and free of technicalities so that users can access insurance services in a fast, reliable and comfortable way", said Sostengo's CEO, Estuardo Escobar.

The app, which will expand in the short and medium term to other Central American markets, and available in the App Store and Play Store as well as in AppGallery, has a user experience focused on the main needs that a customer wants in an insurance policy.

Sostengo has a user-friendly and very intuitive flow, thanks to the algorithms and artificial intelligence with which it is designed. The platform is the only one of its kind that offers complete personalization, allowing it to recommend the ideal insurance for each type of vehicle and offer each user the fairest price according to their needs.

In addition, the application also allows to manage in a few minutes the different stages of the service acquisition process: insurance contract for your car, vehicle accident report, assistance with real people in case of emergency and many other options.

Escobar commented that Sostengo is an adjustable solution tailored to the needs of the industry's customers, with customization options aimed at making the tool an easy-to-use application for all its users. You can remove or add coverages as you wish.

"The market has a very large potential for growth, since only 10% of El Salvador's vehicle fleet has an insurance policy, according to 2019 data from the Asociación Salvadoreña de Empresas de Seguros (ASES)", Escobar said.

Through innovative technological solutions and an option like Sostengo that adapts to everyone's coverage needs, the company begins operations in the country with the intention of taking advantage of the added value it has and thus educate people regarding the importance of acquiring insurance and being backed permanently.

Sostengo arrives in El Salvador with its first IT product to innovate and evolve the insurance industry with effective technological solutions at the forefront of the sector available to direct clients, corporations and insurance brokers, with plans for regional expansion and updating its portfolio of services with the future inclusion of life and property insurance.

"We are confident that El Salvador is ready to embrace the digital transformation and incorporate Sostengo into their day to day; our team is ready to offer them the best automotive coverage service at the reach of their smartphones", concluded Sostengo's CEO.

As part of the insurtech's strategy, they plan to raise new capital in the first half of 2022, in order to continue their expansion plan and diversify their products.