P&C insurer Southbridge Chile outlines digital push

P&C insurer Southbridge Chile set sail in 2017.

The company is a unit of Canada's Fairfax Financial Holdings, which in 2016 entered into an agreement with US group AIG to acquire several of its Latin American businesses.

Following the launch of Southbridge in Chile, BNamericas spoke with company chief Fabiana De Nicoló, who said the firm needs to be “constantly innovating.”

And Southbridge has been doing just that. It has been building its digital muscles, moves that have included the launch of digital insurance platform Seguro Fácil, where users can take out and manage policies. 

To find out more about the new product and the company’s plans, BNamericas caught up with De Nicoló.

BNamericas: Did development of the Seguro Fácil platform start before the pandemic? If so, did the crisis accelerate the process?

De Nicoló: Seguro Fácil began as a project within the company two years ago, when Southbridge amended its customer strategy, to focus more tightly on customer experience centered on quality of service. For this we understood that, in addition to a digital platform, it was necessary to diversify the portfolio of personal lines products and understand the new needs of consumers, considering that, today, insurance must be available 100% in a virtual manner, in order to insure anyone, regardless of where they are.

The social unrest of October 2019 in Chile and the pandemic spurred the company to accelerate its digital processes with the launch of more than 40 projects related to digital transformation. Among them was Seguro Fácil, Southbridge’s first 100% online platform which is not only a purchasing platform but also includes after-sales. We want to provide customers with a 100% digital experience.

BNamericas: The launch is a big step for the company. What internal adjustments did you have to make to carry out this project and what were the main challenges?

De Nicoló: The launch of Seguro Fácil was a great challenge and required a lot of coordination between the different areas of the company, since it was launched during the pandemic, when the organization was working 100% remotely. This makes us proud, because the teamwork, professionalism and commitment of all those involved was demonstrated. Before the quarantines began in Chile, we launched telemedicine-based personal accident product Quédate en Casa, developed in mid-March, so that all families, regardless of the geographic location where they are, can have a medical consultation by video call when required, in simple steps and without leaving their home.

The challenge for Southbridge was to create an insurance e-commerce platform that, in turn, was self-managed as a private site where the client can get quotes, take out insurance, consult policies, make claims, and make payments – a comprehensive digital experience.

BNamericas: Did Southbridge work with a third party, like an insurtech, for example?

De Nicoló: The team did extensive benchmarking work to learn about the success of different e-commerce platforms in Europe, and we chose the supplier with the support of Fairventures, the innovation lab of the Fairfax group. We chose this insurtech because it allowed management from any device – cell phone, tablet or computer – and for the achievement of a totally digital experience. That was the differentiating attribute that we envisioned at Southbridge. We also rely on a digital marketing agency for the design and for generation of traffic to the website.

BNamericas: Southbridge operates in other countries in the region. Are there plans to replicate Seguro Fácil in these countries?

De Nicoló: Southbridge belongs to Canadian holding company Fairfax Financial Holding Limited, which has a presence in Brazil, Chile, Argentina, Colombia and Uruguay in Latin America and in the US, Canada, Asia, Africa and the Middle East. There is a model of collaboration between all countries both regionally and globally. We permanently share experiences so that they can be replicated in other countries.

BNamericas: Southbridge is a major player in business insurance. Do you currently have projects under development in this segment and/or in the personal lines segment?

De Nicoló: Southbridge's strategy is to continue consolidating in the corporate market and also to grow in the SME and Personal Lines segments. 

For SMEs, it has developed a quotation tool for brokers that also permits a 100% online experience and has a virtual branch for broker support, which was of great help during the pandemic.

The corporate area is developing many tools aimed at digitizing issuance and internal processes in the company.

In terms of personal lines, the idea is to increasingly diversify the portfolio of products to adjust to the new needs of our customers. Through Seguro Fácil we offer insurance for personal accidents with telemedicine, cancer, travel, home, pets and soon, the company will launch more products in this 100% online model, covering niches such as entrepreneurs, scooters and bicycles, among others. 

In addition, with the purchase of online insurance through Seguro Fácil, the insured will be contributing to the reforestation of native forests, in line with our corporate social responsibility work.

The idea is to break down geographical barriers, give access to non-traditional segments and take care of families, allowing a large percentage of the population to have access to insurance easily, at fair prices and 100% digital.