Sigo Seguros, a digital-first non-standard auto insurance brand that is eliminating extra fees, announced it has raised a $10.5 million Series A led by Varco Capital and returned investor Listen. Angeles Ventures and Flintlock Capital participated in the round, as did existing investors Zeal Capital Partners, Rise of the Rest, and Fiat Ventures. Varco Capital is the family office of Rafael and Carlos Varela, the founders of Pronto Insurance, a leading non-standard auto franchise.
Sigo underwrites non-standard auto insurance, a large but overlooked vertical in insurance, where drivers are charged onerous fees and pushed to accept handwritten offers in broker-run brick-and-mortar stores. And Sigo’s digital platform enables customers to acquire insurance in minutes from their phone while saving them hundreds of dollars annually, on average. Sigo is focused on the working class, initially serving Hispanic and Latino communities by offering an end-to-end experience in Spanish.
This offering resonated with consumers as Sigo grew Gross Written Premiums by over 500% last year, reflected further in payback periods measured in weeks, rather than years as is normally the case in auto insurance. And the company’s underwriting technology is generating profitable loss ratios, which is in stark contrast to the boom and bust cycle of other auto insurtechs over the past decade.
This financing also positions the company for expansion to new markets with large immigrant communities and few suitable options for auto insurance all the while providing a best in class bilingual service to customers. In connection with the investment from Varco Capital, Rafael Varela will join the board of directors.
KEY QUOTES:
“The existing insurance industry overlooks the Latino community despite its outperformance in terms of loss ratios. Large, national insurance carriers intentionally ignore our customers and prioritize the use of credit score, while small, regional carriers provide antiquated service through opaque, fee-heavy independent agent channels.”
“We continue to see strong demand for a digital approach to serving our community with auto insurance. Rafael and Carlos built Pronto into one of the leaders in the non-standard auto insurance space. We are honored to have their support as we continue to revolutionize the industry with relentless innovation and unwavering commitment to underserved markets.”
-Néstor Hugo Solari, Co-Founder and CEO at Sigo
“Varco Capital is excited to partner with Sigo Seguros to bring a modern approach to the non-standard auto insurance market. Nestor and team are focused on serving drivers with technology and a better experience, while saving them millions of dollars in downpayment fees. We are eager to support their much needed offering in the coming months and years ahead.”
-Rafael Varela, Partner at Varco Capital, who previously sold Pronto Insurance to Gallagher
