Chubb partners with digital bank Nubank to serve its 30 million customers.
Nubank and Chubb today announced the launch of a fully digital life insurance offering in Brazil. With the introduction of Nubank Vida, the largest independent digital bank in the world enters the insurance market with a fast, seamless and personalized capability available to its 30 million customers across Brazil. Nubank Vida is underwritten by Chubb, the world's largest publicly traded property and casualty insurer with operations in 54 countries and territories. Nubank Vida was developed using the integration capabilities of Chubb Studio, the global digital product distribution platform announced by Chubb in September.
The Nubank life insurance offer is fully customized to allow the customer to enjoy a seamless experience where quotes, bill payment and account management are all transacted digitally. Basic coverage includes natural or accidental death and funeral assistance, as well as living benefits covering hospitalization for accident, disability for accident and funeral assistance for family members.
"For most Brazilians, having the protection of life insurance has been a distant dream due to the cost and complexity of available options in the market, as well as a general lack of understanding about the real benefits of coverage. With Nubank Vida, we are taking the first step towards democratizing access to the insurance sector in Brazil, just as we helped to create a new generation of financial services in Latin America," said David Vélez, founder and Chief Executive Officer of Nubank. "Nubank Vida is totally adaptable to the needs of customers. In the offering process, we abandoned predefined packages and the unreadable technical language of conventional policies, which only makes the process more expensive and difficult than it needs to be. With Nubank Vida, through our app, the customer will have the autonomy to choose and only pay for what they really value and use."
"We are thrilled to participate in the digital revolution Nubank is bringing to the financial services sector," said Marcos Gunn, Senior Vice President, Chubb Group and Regional President, Latin America. "Our partnership with Nubank as it enters into the insurance industry demonstrates the value of our digital strategy to partners and the strength of our team. Together, Nubank and Chubb were able to design a tailor-made insurance solution for the Brazilian market that perfectly matches Nubank's unique focus on delivering a superior customer experience."
To deliver an agile and differentiated experience, in addition to direct access through the app and Nubank's 24-hour customer service, Chubb has assigned a dedicated claims team supported by an efficient, simplified process for claims notification and swift responses. For certain simple and urgent cases, payment can be made within a few hours.
"Chubb is pleased to partner with Nubank, the largest fintech in Latin America, during its own expansion journey," said Sean Ringsted, Executive Vice President, Chubb Group, Chief Digital Officer and Chief Risk Officer. "Our ability to secure, service and grow partnerships reflects our geographic reach, product breadth, underwriting capabilities and claims service globally. With our consistency in local delivery, Chubb is able to transport best practices, creating unique customer experiences that match our partners' digital assets."
The launch of Nubank Vida takes place during a year marked by the strong acceleration of digital platforms and the intense growth of Nubank. In 2020, Nubank debuted in the investment sector with the purchase of Easynvest and acquired the companies Plataformatec and Cognitect, in search of talent in software engineering. In addition, it strengthened its international presence by launching its first product in Mexico, and expanding to Colombia in September.
Nubank's entry in the insurance sector comes as a result of the demand from its own user base. In a survey conducted by the digital bank, only 20% of its customers claim to have an active life insurance policy. However, more than 70% of Nubank customers expressed an interest in having access to the coverage.
Nubank Vida combines simplicity and affordable prices that allows the customer to choose the protection and coverages appropriate for their life stage and important milestones. Policies can be managed in a fully digital manner and the entire contracting process, including cost calculator and service confirmation, takes minutes using Nubank's app. With the proposal to democratize life insurance, many risky professions, often rejected due to the danger of the occupations, will be considered. The insurance may also offer coverage for pandemics like Covid-19 and other diseases, such as diabetes, that are generally excluded by life insurers.
As digital ecosystems continue to define economic activity and blur the borders between market sectors, insurance is a highly relevant product for nearly all B2C and B2B channels. The capabilities of Chubb Studio build on the success of the company's digital strategy to forge distribution partnerships with leading brands globally. It provides significant speed-to-market and offers a secure and scalable platform with multiple APIs to simplify the process. Chubb's digital platform enables partners in fintech, retail, e-commerce, banking, airline, telecommunications and other industries to add digital insurance options – from personal accident, supplemental health and life to residential and contents, mobile phone and travel coverages – to their own product and service offerings.
