October 12, 2022

Henrique Volpi: Kakau building a digital platform in Brazil

54 minutes

On this episode of Scouting For Growth, Sabine VdL talks to Henrique Volpi, one of the co-founders and the CEO of Kakau, one of the very first InsurTechs in Latin America. Kakau is an InsurTech and tech platform that delivers digital experiences while improving insurance operations and easing the delivery of complex financial services. Kakau's SaaS model is powered by machine learning and robotic process automation. Henrique is a co-author of the InsurTech book and the co-founder and board member of the InsurTech Association of Brazil. During the conversation, Sabine and Henrique discuss InsurTech in Latam and Brazil, selling insurance via the phone, Brazil's regulator approving subscription transaction models, NFT policies, and the future of tech-led business models.

KEY TAKEAWAYS

Back in the day, people would question whether it was possible to sell insurance digitally. Insurance sales were only done by phone. Indeed, you could start a business via Google Ads and similar platforms. Still, a fully digital experience wasn’t delivered back then. So, we did the contrarian thing and designed a digital-first platform, since we knew this was a global trend. The first thing we did was to discuss the project with a very large legal forum in Brazil and ask for their help, because insurance is a regulated industry, and we knew the importance of having a legal team. We designed one of the first digital MGAs in Brazil.

From the beginning, we have spoken to the regulator. This approach was very different from other startups that were afraid to go to Rio and speak to them. We just shot straight and said: “We want to do this. Is that legally OK? Can we move forward?” We took a different approach from the other startups. Over time, the regulator told us that we could not engage with them that much. So, we went back to our legal partner and set up the first Brazilian InsurTech Association to help technology startups gain the insights they needed to build their InsurTech right. We started with 4-5 companies, and now we have more than 20 members.

The first thing I believe we need to educate others on is finance and, therefore, insurance, especially in Brazil. This should be the same in South-East Asia, Africa, and Latin America as a whole. Individuals must learn how to make money and take care of their money because many people do not know how. They have to learn how to lend money, how to manage that money, and, hopefully, how to save a little bit. Only later will they think about insurance. Typically, you start with lending and credit cards, then move up the value chain to investments, and finally to insurance. Insurance and InsurTech are probably 5-6 years less mature compared to FinTech in Brazil, which is going very strong.

Don’t be afraid to pivot your business model; you’re going to pivot many, many times along the way, and you have to be aggressive with technology. We’ve seen many, many companies around the world that don’t really have a good tech stack; it’s just a front-end. What’s interesting, though, and I’m excited about this too, is that when a market player realizes it doesn't need to own everything, it can consider licensing. When you license the best capabilities available, you gain a different perspective on how you serve your customers and users.

BEST MOMENTS

‘Even though it was very hard and there was a lot of work to do to prove the content, we proved that one can sell insurance policies digitally. Now it’s something that’s growing very fast in Brazil.’

‘We may be going through a crisis. Still, what’s happening now is very volatile. So, when growth opportunities return, the launch of digital-first businesses may return faster than a lot of people think.’

‘I’m very interested in the ramifications of cyber risk within our digital world. I think another trend we need to pay attention to is the monetization of value-added services. Some big carriers in Brazil are setting up services companies that will prevent risks from happening, especially around commercial lines.’

‘Go for it. The world needs people who have the courage to become entrepreneurs.’

ABOUT THE GUEST

is known for having a positive attitude, execution focus, and servant leadership. Committed to making a positive impact, Henrique Volpi is the co-founder of Kakau, one of the first InsurTech startups in Latin America. A technologist for the past 25 years, working in leading tech companies such as ServiceNow, EMC/Dell, and BMC Software. Henrique co-founded and became the president of the Brazilian Insurtech Association. He is a co-author of the Insurtech Book.

Kakau Technologies simplifies financial services and insurance operations by leveraging AI. By leveraging ML and RPA Kakau Tech delivers seamless SaaS solutions in Risk Model Management, NLP Claims Management, NFT Policy Management, and Churn Prediction. Kakau's technologies provides a digital platform that uses artificial intelligence technology to deliver more accurate results in the insurance segment. Kakau delivers a fully digital experience seamlessly powered by machine learning across multiple product categories. The platform enables users to get insurance for various products like motorcycles, cell phones, digital devices, and bikes, among others.

ABOUT THE HOST

Sabine VanderLinden is a corporate strategist turned entrepreneur and the CEO of Alchemy Crew Ventures. She leads venture-client labs that help Fortune 500 companies adopt and scale cutting-edge technologies from global tech ventures. A builder of accelerators, investor, and co-editor of the bestseller The INSURTECH Book, Sabine is known for asking the uncomfortable questions—about AI governance, risk, and trust. On Scouting for Growth, she decodes how real growth happens—where capital, collaboration, and courage meet.

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