Central American Insurtech Sostengo raised $3.8 mn seed funding for Latam markets and U.S. Hispanic entry. With 103% premium growth, it pioneers accessible insurance, expanding regionally and targeting the U.S. Hispanic market.
Insurtech with a self-serve end-to-end solution based in San Salvador, has extended the round by an additional $1 mn for its expansion into the U.S. market.
Founded in El Salvador in 2021, Sostengo introduced a user-friendly, self-serving, accessible, and agile auto insurance APP. The platform has enabled individuals, 70% of its current customer base, to secure their first safety and protection through their smartphones (see Biggest InsurTech Startups).
Sostengo experienced a 103% year-over-year growth in premiums sold, reflecting the company’s robust expansion and increasing impact in the insurance industry.
Sostengo aims to capture this uninsured segment by providing the first customizable, affordable, and user-centric insurance tailored to individual needs.
Despite the growth in registered vehicles in Central America, less than 10% of vehicles are insured and protected.
Through the Sostengo app, users can easily quote, customize, purchase insurance, report incidents, receive assistance from human agents in emergencies, and complete the payment process — all within minutes.
Startup’s mission goes beyond driver protection; it seeks to educate its users on viewing insurance as a long-term investment that ensures the physical protection of the driver, their assets, and third parties in the event of unforeseen events.
We are continue evolving the industry and position ourselves as pioneers in the digitalization of insurance in the our region. New funding round will introduce our solution to U.S. Hispanics
Estuardo Escobar, CEO of Sostengo
Insurtech is a pioneer not only in Central America bringing innovation and accessibility to the region, but it has also identified an important underserved niche in a more developed insurance market — the Hispanic population in the United States.
The U.S. Hispanic market, the fifth-largest global economic potential, is growing significantly yearly.
by Peter Sonner
