Brazil shows the way forward

“We have made real headway in Brazil with our straightforward and attractive products, such as capital-building plans with random draws and our broad range of local distribution channels, such as Caixa branches, a network of lottery offices extending as far as Amazonia, and non-profit partners in the favelas. Twenty years after we first set foot in the country, we now operate the continent’s number one 100% digital insurer !”
Xavier Larnaudie-Eiffel,
Deputy Chief Executive Officer, Partnerships and Development

 

Almost twenty years ago, CNP Assurances moved into Brazil, and its expansion since then has been quite remarkable thanks to its partnership with Caixa Econômica Federal and its 100% Brazilian approach. Its products and services are straightforward, attuned to the local population’s needs and way of life, and are distributed nationwide via its partner’s network, which is as diverse as it is people-focused. The range of solutions it offers has gradually expanded and now extends from savings through micro-insurance to pensions. Recent social development coupled with the benefits of growth has swollen the ranks of the Brazilian middle classes. These factors have also given the population more mature protection needs.

In 2017, the Group made a major creative leap forward

In an effort to disrupt the market completely, it launched South America’s first 100% digital insurance company. It built a new team of start-uppers with totally different methods and ways of doing things based in a different city. It also gave the company a new name: Youse. Its first product was a simple motor insurance policy (optional in Brazil) targeting young people in employment. Then it created Youse Friends harnessing peer-group pressure. That is a solution covering groups of friends, relatives or organisation members who take joint control of claims and share out the savings, which can reduce the premium by up to 50%. In the space of a year, the number of communities created tripled to 10,000 groups.

It was a light-bulb moment that yielded tremendous insights. Over just two years, we increased our push capabilities and sought to balance the model, involving customers in risk management and sharing out the benefits. Granted, Brazil is less mature than the European market, but today it is showing the way forward.