Nubank bolsters its Latin American offering with insurance product

Brazil-headquartered challenger bank Nubank has launched an insurance product, following going public last month, a report by Coverager has revealed.

The insurance product covers damage and theft of mobile phones, coverage is provided by Chubb Seguros Brasil. The company reportedly sent out emails to its users inviting them to the product.

This marks the challenger bank’s second insurance offering. It previously launched a fully digital life insurance offering called Nubank Vida in Brazil in December 2020. The product, which is also provided by Chubb, was developed using the integration capabilities of Chubb Studio, the insurer’s digital product distribution platform.

Nubank raised $750m in a Series G funding round last year, which saw its valuation reach $30bn. The round was led by Warren Buffett’s Berkshire Hathaway Inc, alongside other participants including Sands Capital, Canada Pension Plan Investment Board, MSA Capital, Advent’s Sunley House Capital and Brazilian asset managers Verde Asset Management and Absoluto Partners.

The neobank offers a variety of financial products, including a digital bank account, a debit card, insurance, P2P payment via Pix, loans, rewards, life insurance and an account and credit card for small business owners.

Nubank serves unbanked or underserviced citizens in Brazil. Since its $400m Series F in July 2019, the company’s customer base has grown from 12 million to 40 million people, with more than 45,000 signups a day.

According to David Vélez, Nubank CEO, Nubank is helping to democratise access to financial services in Latin America: “Around 50% of the population in Latin America still does not have a bank account. Credit card penetration is, on average, 21%, while in the United States this number is over 70%.”

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