Cristina Carvallo | Founding in Insurance and Building Culture in a Startup [Ep. 35]

The audio and video are in Spanish. These notes are a translation.

Historically, the insurance industry in Latin America has been characterized by little innovation and competition, which has meant that a very small percentage of our population uses insurance, compared with other regions. In response to this, the first 100% digital and autonomous auto neo-insurer in Mexico emerged.

Today we have Cristina Carvallo, its CPO and cofounder. We talked about the opportunities in the insurance sector, her strategy for entering such a regulated industry, and how to build culture and attract talent at a startup.

What You Can Learn Today

• Building product in the insurance industry
• Attracting talent in an industry that is not very “sexy”
• Recommendations for developing and maintaining a startup’s culture

If you like the podcast, the easiest way to help us is by leaving a review with ⭐⭐⭐⭐⭐ on Apple Podcasts. It takes less than 1 minute and helps us convince the hardest guests to land, such as David Vélez, CEO and founder of Nubank, whom we would love to interview.

Youtube Timestamps*

The Insurance Industry

• [1:10] - How did Cristina get into the world of startups?
  • Previous work at a corporation
  • Curiosity about the world of startups and their growth
• [2:30] - What problem does it solve and how have insurance services changed?
  • 100% digital auto neo-insurer
  • The insurance sector in Mexico had gone 40 years without innovating
  • 70% of car owners do not have auto insurance
  • 80% of policies are purchased through brokers
  • Birth of neo-insurers
• [6:44] - Who are their current customers?
  • People who already had insurance
  • Most policies are assisted, that is, they need a person in order to make the purchase
• [10:30] - Why do you think there has been so little innovation in insurance?
  • Neglected industry
  • Users do not understand the product
  • The large insurers do not have the speed needed to innovate
  • The industry is broken (insurers are not close to customers and brokers have no power over the product)
• [15:15] - Why did she decide to start as an insurer?
  • Being able to make a real change in the industry
  • Having the user closer
• [16:35] - What were the strategic reasons for launching with auto insurance as the first product?
  • The current focus is on being an auto insurer
  • The process to obtain the license takes a long time and only serves one type of service
  • At each stage of using auto insurance, the user has a pain that must be solved
• [18:15] - What are their plans for products that complement auto insurance?
  • Personalizing the product and digitizing the process
  • Additional benefits within their current offering
• [19:54] - How can the product plan help them be more profitable?
  • Knowing the user and the level of risk they have
  • Loyalty programs that recognize tenure
• [23:24] - Personalizing insurance according to different risk profiles
  • Review of information from the credit system
  • Analysis of consumer behavior

Talent and Culture in Startups

• [25:55] - How do you attract talent to an industry that is not very sexy?
  • Recognizing themselves as a product company
  • Internal culture focused on disruption
  • A team that is aligned and understands the problem
• [27:40] - Hiring a very experienced candidate vs. another with a more flexible mind
  • The founding team did not know about insurance
  • Identifying experienced people who understand the problem
  • Mindset is the key in hiring
• [30:10] - Can you tell us how you have developed the culture from the start and what the “handbook” is about?
  • The handbook encourages autonomy, trust, performance, and identity
  • Alignment with the company’s purpose
  • Clear values
  • The challenge of culture is making decisions in difficult moments
• [35:52] - How was the handbook born?
  • It was only a concept they talked about constantly
  • The ideas were made concrete
  • It is a flexible document
• [38:50] - How to have a “champion” inside the startup who fosters the culture?
  • Culture is not a role, it is a way of doing things
  • Spreading the way of doing things so the culture is not lost
• [43:35] - Balance between work culture and maximizing productivity
  • Aiming for it to be a good place to work, with autonomy
  • Creating a space where people challenge themselves, grow, and learn
  • Making the hard decisions
• [47:05] - Culture in the early stage vs. in more mature stages
  • Maintaining basic principles
  • Close work with leaders

Tweet Round

• [48:45] -
  • Recommended book: Powerful: Building a Culture of Freedom and Responsibility - Patty McCord
  • Changes in the startup ecosystem: That culture not be seen as a role or a position.
  • Founder to interview: David Vélez, Cofounder of Nubank

Episode Mentions

You can follow Cristina on Twitter

Recommended book: Powerful: Building a Culture of Freedom and Responsibility - Patty McCord

Founder to interview: David Vélez of Nubank

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