Argentina-based MercadoLibre’s fintech unit Mercado Pago has introduced its life insurance service in Brazil, reported Reuters.
The e-commerce company plans to leverage its 36 million user base for the new service.
Life insurance plans will cost over BRL$9.90 to BRL$73.0 ($1.91 to $14.05) a month.
Mercado Pago in Brazil head of insurance Michelle Brito told Reuters that customers can opt to add dental emergencies, telehealth services, hospital coverage, and even funeral expenses to their insurance plans.
The unit, which made up of 45% of MercadoLibre’s revenues in Brazil in Q1 2022, will also launch personal accident insurance in around two months.
Initially, the focus will be on people travelling a lot, such as couriers.
Mercado Pago initially forayed into insurance by selling extended warranties for electronics and cell phones.
In 2020, it began providing the country’s Pix payment system theft protection.
According to Mercado Pago, it has sold over 1 million policies across these two products.
Mercado Pago vice president Tulio Oliveira said there are high expectations for the new life insurance line given the digital platform’s ability to distribute at a low cost.
The life insurance policy has been designed in partnership with insurance company Prudential and the Klimber digital insurance platform.