MercadoLibre reaches 5 million clients in insurance business

Latin American e-commerce giant MercadoLibre has achieved a significant milestone in its insurance business, reaching five million clients, according to a senior executive. This achievement marks another step forward in the company's goal to become the largest financial and e-commerce ecosystem in the region.

The Milestone

MercadoLibre was able to reach this milestone in less than four years, thanks to its heavy investments in technology and a strong focus on users. Carlos Cernadas, head of Insurtech LatAm for the company, stated that their main clients are low and mid-low income individuals, as they have the greatest need for insurance. By offering insurance through the company's marketplace and Mercado Pago, MercadoLibre has been able to improve access to insurance for these individuals.

Across Latin America, there is a lack of access to insurance products and coverage. According to data from the OECD, Latin American countries rank significantly lower than their counterparts in North America, Europe, and Asia in terms of gross insurance premiums.

MercadoLibre, based in Argentina and operating in 18 countries, has not disclosed the exact amount invested in its insurance business this year. However, the company has announced plans to invest 19 billion reais ($3.90 billion) in logistics, technology, and fintech in Brazil, as well as $1.6 billion in Mexico.

Caroline Sanchez, an analyst at investment consultancy Levante, commented that reaching the five million mark is a result of MercadoLibre's strategic move, which reinforces the company's primary business offerings. She added that each of MercadoLibre's recent launches can be seen as a subdivision of the company's core e-commerce and fintech businesses, which have been successful and fruitful.

In its recent financial report, MercadoLibre announced a 113% increase in its second-quarter net income, reaching $261.9 million. This growth was attributed to higher sales volume and an increase in users.

In the fintech division, MercadoLibre reported adding 7.1 million new users across its operations in the last 12 months, bringing its active financial user base to 45.3 million.

With its continued expansion and success in the insurance and fintech sectors, MercadoLibre is solidifying its position as a leading player in the Latin American market. The company's focus on technology, user-centric approach, and strategic investments are driving its growth and establishing its dominance in the region's financial and e-commerce landscape.