Every day, several motorcyclists die on the roads in the Brazilian state of São Paulo. For insurers, this risk is considered almost incalculable. Nevertheless, a young entrepreneur found a solution and created both a social and economic model.
Anyone driving from the airport into the city in São Paulo will see them immediately: motorcycle couriers weaving through the traffic at high speed. Stop-and-go, tight maneuvers, constant time pressure. The downside of this urban logistics is dramatic: in the state of São Paulo, an average of seven motorcyclists die every day. For traditional insurers, this is a nightmare: too frequent, too deadly, too expensive.
A market that nobody wanted
Yet there are around five million motorcycles in this state alone. For Gabriel, a young entrepreneur, it was clear that where others only saw risk, there could be a market if it was professionally structured. From his time in the USA, he was familiar with the principle of specialty insurers who deliberately underwrite risks that others avoid: Bars, clubs, amusement parks or other “dangerous” activities. The decisive factor is not avoidance, but the precise limitation and pricing of the risk.
Social problem meets insurance logic
The risk of motorcycle couriers is not only tricky in terms of insurance, but also socially explosive. Many riders belong to low-income groups and simply cannot afford individual policies. This is precisely where Gabriel came in with a model that combines risk, technology and responsibility.
Insurance only during work
The solution: insurance cover only during actual working hours. Drivers activate the insurance cover via app when starting a delivery and deactivate it after completion. The premium is not paid by the driver, but by the employer. This clearly limits the risk in terms of time, makes it easier to calculate and makes it insurable for the first time ever.
Regulated, recognized, scalable
The support of the supervisory authorities is also remarkable. The model does not operate in a gray area, but is embedded in the regulatory framework. Gabriel has thus not only defused an acute social problem, but also created a viable business model.
Insurance as a design tool
History shows what insurance is capable of when it not only manages, but also shapes. High risk does not automatically mean “uninsurable”. With data, clear rules and new role allocations, even extreme risks can be integrated for the benefit of the economy and society.
Insurance is more than just paper and premiums. It can protect lives, safeguard jobs and open up new markets if someone has the courage to rethink risks.
Binci Heeb
Paul the Insurer has other content that may interest you, such as the series of interviews with insurance industry executives.
Listen and read also: From chance to vocation
Search:
Sponsors:
