Brazilian insurtech Split Risk has successfully raised R$50 million in a funding round backed by HSR Soluções e Participações and La Barca Empreendimentos. This financial boost is set to enhance the company’s technological infrastructure and build technical reserves, positioning Split Risk for future growth. Founded in 2020, the company has quickly established itself as a disruptive player in the insurance sector through its Insurance-as-a-Service (IaaS) model.

Strategic Allocation of Funds

The newly secured funds will be channeled into two primary areas: strengthening technical reserves and investing in technology. This strategic allocation aims to support Split Risk's ambitious goal of reaching R$500 million in premiums issued by the end of 2026. A portion of the investment will also facilitate the expansion of operations, enabling the company to introduce new insurance solutions in the Life and Residential segments.

Key Investors and Leadership Insights

The funding round attracted notable investors, including Romi Ferreira Campos dos Santos, Sanders Luke da Silva Maciel, and Emanuel Diego da Silva Maciel from HSR. La Barca Empreendimentos was represented by Humberto Pereira Carneiro and Luciano Mathias Penha, former controllers of Up Brasil and Policard. Their involvement underscores strong confidence in Split Risk’s business model and growth potential.

Innovative Business Model Driving Growth

Split Risk’s CEO, Pedro Pires, attributes much of the company’s success to its IaaS model, which offers flexible insurance options to underserved audiences. By eliminating traditional barriers such as profile analysis and offering simplified subscription and cancellation processes, the company has made insurance accessible to a broader demographic. Remarkably, over 65% of Split Risk’s customer base holds their first-ever insurance policy through the company.

Performance Milestones and Regulatory Progress

Since its inception, Split Risk has demonstrated impressive growth, having issued more than R$43.8 million in premiums by the end of the previous year, according to the Superintendence of Private Insurance (Susep). The company is currently awaiting the finalization of its definitive license from Susep, a milestone that will enable further regulatory independence. The application for this license was submitted in September 2024, reflecting Split Risk's commitment to full compliance and operational expansion.

Future Growth and Expansion Plans

With the anticipated regulatory approval, Split Risk plans to broaden its product offerings, particularly focusing on Life and Residential insurance with annual policy options. This expansion will be facilitated through collaborations with its new investment partners, leveraging their industry expertise and networks. The company’s strategic vision includes not only increasing premium volumes but also enhancing customer experience through continuous technological innovations.

Split Risk’s recent funding round marks a pivotal step in its journey towards becoming a leading force in Brazil's insurtech landscape. The combination of robust financial backing, an innovative business model, and strategic growth plans positions the company for sustained success. As Split Risk continues to break new ground, it exemplifies the transformative potential of technology-driven insurance solutions in emerging markets.