The J Curve Insider: Brazil's Insurance Industry Is Broken. Azos Is Here To Fix It.

Brazil’s insurance market is monopolized by a few legacy players—bloated, slow-moving, and wildly profitable at the expense of customers. Rafael Clo, CEO & Founder of Azos, is on a mission to shake things up. We sat down to discuss why Brazil’s top insurers are comfortable but vulnerable, how insurance penetration lags far behind global benchmarks, and why Azos is using AI and brokers—not performance marketing—to build the future of insurance.

💸 Big congrats to Rafael and the Azos team on your $30.5M Series B raise led by Lightrock. Way to go!

THE INSURANCE GAP NO ONE IS TALKING ABOUT.

Olga Maslikhova: Rafael, Brazil’s insurance market is massive. So why is it still so underdeveloped?
Rafael Clo: Because it’s stuck in the past. The market is already growing at 10% per year, but life insurance penetration is just 0.5% of GDP—compare that to 3.4% in the U.S. and 4.5% in OECD countries.

Even compared to other Latin American countries, we’re behind:

• Chile: 1.7% of GDP

• Mexico: 1.2%

• Peru: 1.0%

If Brazil just reaches Chile’s level of insurance adoption, that’s an extra $25B in potential premiums. It’s a massive, untapped opportunity.

WHY INCUMBENTS HAVEN’T MOVED—AND WHY THEY’RE VULNERABLE.

OM: Why hasn’t anyone capitalized on this yet?
RC: Because the market was literally built by two companies. Prudential entered Brazil 20 years ago and created the life insurance market from scratch. They trained brokers, educated customers, and made life insurance a thing. Bradesco followed, and together, they now control 65% of the market.

Their profit margins are insane, with an average ROE of 22-23%. With numbers like that, why would they innovate? They’re running on legacy tech, slow underwriting, and outdated distribution models. Meanwhile, customers are stuck with overpriced, inefficient products.

HOW TO BEAT LEGACY PLAYERS.

OM: So how do you win in a market like this?
RC: By doing the exact opposite of what incumbents do. We’re focused on three things:

♢ Speed & Efficiency – Traditional insurers take 10-14 days to underwrite a policy. Azos does it in 3 seconds.

♢ Empowering Brokers – Insurance still runs through brokers, but they’re stuck with 90s-era tech. We built an AI-driven platform that makes selling policies easier and faster.

♢ Better Coverage – Our products cover things incumbents avoid, like moderate cancer cases. Customers get real protection, not just fine print.

OM: Most fintechs scale with aggressive paid marketing. You’re betting on brokers instead. Why?
RC: Because insurance is about retention, not just acquisition. A broker who builds trust with a customer means lower churn, better margins, and a stickier product. While others chase short-term CAC payback, we’re playing the long game.

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THE TECH INFRASTRUCTURE IS A NIGHTMARE.

OM: What’s been your biggest challenge scaling Azos?
RC: Infrastructure. Unlike banking, which had a wave of new core platforms, insurance is still running on decades-old systems that are a nightmare to integrate with. Four years in, we’re still learning.

OM: How has regulation played into this?
RC: The good news is that SUSEP (Brazil’s insurance regulator) is finally shaking things up. They introduced a regulatory sandbox, lowered capital requirements for new insurers, and are pushing Open Insurance—kind of like Open Banking, but for insurance. It’s still early, but the trend is clear: more competition, more transparency.

AUTOMATION, UNDERWRITING, AND BROKERS: WHERE AI ACTUALLY DELIVERS.

OM: Every startup is talking about AI. How real is it in insurance?
RC: It’s real. We’ve already built AI tools that:

1. Supercharge brokers – AI lets them compare policies instantly, get underwriting decisions in seconds, and generate quotes just by sending a voice message.

2. Cut operational costs – We automated 90% of invoice reconciliation, saving 8,000+ minutes per month. AI is also handling policy documentation, coding, and bug fixes.

OM: So AI isn’t just hype—it’s a real efficiency driver?
RC: Absolutely. It lets us scale without ballooning costs, which means we can offer better prices while staying profitable.

THE WILD DUCKS OF AZOS.

OM: Hiring top talent in fintech is tough. How have you built your team?
RC: We hire wild ducks.

OM: Wild ducks?
RC: The best early employees don’t fit the mold. One of our best hires had a master’s degree in beetles. No joke. He led our growth team for three years before launching his own company. The best people don’t always have traditional resumes—they just know how to figure things out.

OM: What advice do you have for founders struggling to attract talent?
RC:

✔ Hire for mission, not just skills – If someone is just chasing a paycheck, they won’t last.

✔ Give equity, but only to true believers – If they don’t see the long-term upside, the equity won’t matter.

✔ Make the hard calls early – If someone isn’t the right fit, don’t delay tough decisions. You spend more time with your team than your family—surround yourself with the right people.

THE LESSONS.

OM: If you had to boil down your biggest lessons from scaling Azos, what would they be?
RC:

1. Pick the right investors – Forget valuation. If they don’t share your vision, it’ll be a disaster.

2. Play the long game – Insurance isn’t about quick wins. It’s about trust, retention, and smart underwriting.

3. Make it fun – This sh*t is hard. You better enjoy who you’re building with.

FINAL TAKEAWAY

✔ Data is the real moat – The best insurers aren’t just risk managers—they’re data companies optimizing for lifetime value.

✔ Fix the broken infrastructure, and you own the market – Every fintech revolution started by rebuilding the rails. Insurance is no different.

✔ Retention > CAC – Insurance is a long-term game. The best companies focus on loyalty, trust, and renewals over aggressive paid acquisition.

✔ AI isn’t optional – From underwriting to broker support, automation is key to scaling efficiently without bloated costs.

✔ Regulation is shifting from protectionism to competition – Brazil’s regulators are lowering barriers to entry for new players. The incumbents are being forced to adapt.

And the opportunity is massive: If Brazil’s life insurance penetration reached Chile’s levels, it would unlock an extra $25B in potential premiums. The market is still wide open.

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