Why We Invested: Crabi
Revolutionizing Car Insurance in Mexico
Car insurance in Mexico is plagued by inefficiencies, slow claims processing, outdated underwriting models, and frustrating customer experiences. The industry is dominated by legacy incumbents, whose rigid processes result in long wait times, limited transparency, and policies that often fail to align with customer needs. This has led to a low market penetration, with only 30% of vehicles in Mexico insured.
The problem isn’t just a lack of coverage, it’s that even those with insurance are often underserved. The average Net Promoter Score (NPS) for traditional insurers is just 35, reflecting customer dissatisfaction with delays and bureaucratic hurdles. In contrast, Crabi has achieved an 87 NPS, setting a new standard for service quality in the market.
Crabi is the first full-stack digital car insurer in Mexico, leveraging technology and data-driven underwriting to deliver fair pricing, faster claims processing, and an overall superior customer experience.
A Full-Stack Approach to Disrupting an Outdated Industry
Unlike other Insurtech startups that rely on third-party underwriters, Crabi controls the entire value chain, from policy issuance to claims management. This means greater pricing flexibility, more efficient processes, and the ability to directly improve customer experience.
By obtaining a vehicle carrier license, Crabi became the first new company in 30 years to secure full operational control over car insurance in Mexico. This milestone allows them to own underwriting, policy management, and claims resolution, eliminating middlemen and reducing costs while improving service speed.
Crabi’s proprietary pricing model incorporates a range of data sources, driver credit history, phone metadata, and vehicle and environmental data to generate more accurate risk assessments and lower loss ratios. Compared to traditional insurers that primarily base pricing on the vehicle itself, Crabi can offer more competitive rates tailored to individual drivers.
A Shift to B2B2C for Scalable Growth
Originally launched as a Direct-to-Consumer (DTC) insurer, Crabi pivoted to a B2B2C model by partnering with brokers, financial institutions, and car rental agencies. This move has significantly improved unit economics and scalability.
One of its most impactful partnerships is with Kuna Capital (Kavak’s leasing arm), which provides Crabi with a steady pipeline of new policies for used cars sold on credit. Crabi is also working with Dalton, Iturán, and other players in the car retail industry, ensuring a continuous flow of insured vehicles.
This shift allows Crabi to tap into the rapidly growing used car leasing market, an underserved sector in Mexico that is now integrating embedded insurance solutions into its financial offerings.
Digitizing Claims & Building a Tech-Driven Insurance Model
One of the biggest pain points in Mexican car insurance is the claims process. Traditional insurers rely on outdated methods, resulting in long wait times and poor communication. Crabi is tackling this with a digital-first approach, where 25% of its claims adjustments are now managed digitally, cutting costs and accelerating claim resolution for customers.
Additionally, Crabi has built a network of 100+ affiliated body shops, some of which work exclusively with the company. This ensures faster repair times and a seamless experience for policyholders.
Beyond claims, Crabi is also leveraging AI and automation to optimize fraud detection, underwriting accuracy, and customer support, further reducing operational costs while improving policyholder satisfaction.
A Massive Market Opportunity
The Mexican car insurance industry represents a US$25 BN market growing at 13% CAGR, despite this, only 30% of vehicles are insured. Crabi’s low-utilization policies, which cover theft and total loss, allow it to penetrate the uninsured segment with accessible, high-margin offerings. Its B2B2C embedded insurance strategy is rapidly gaining traction, resulting in US$11.2 MM in revenue for 2024.
An Exceptional Founding Team
Crabi’s leadership team is a group of seasoned entrepreneurs with deep expertise in technology, insurance, and financial services.
Daniel Bernardez (CEO & Co-Founder) – Former CTO turned CEO, with a background in growth, martech, and product development.
Ignacio Martínez (COO & Co-Founder) – Former Nubank executive, led Nubank’s loyalty program before co-founding Crabi.
This team has proven its ability to execute, pivot strategically, and scale a complex, highly regulated business. Their vision of creating the "Nubank of car insurance" is well on its way to becoming a reality.
Backing the Future of Car Insurance in Mexico
At IGNIA, we invest in companies that disrupt traditional markets with technology, strong execution, and innovative business models. Crabi’s ability to transform auto insurance through digitalization, proprietary underwriting, and strategic partnerships makes it a category-defining leader in the space.
We’re proud to co-lead Crabi’s US$13.6 MM round alongside Kaszek, reinforcing our commitment to backing visionary founders who are reshaping industries.
Congratulations to Daniel, Ignacio, and the entire Crabi team, we’re excited to support you as you scale, innovate, and redefine car insurance in Latin America!