WASHINGTON, USA – IDB Invest committed a $5 million equity investment to Mundi Ventures Latam Fund I, a $100 million early-growth vehicle managed by Mundi Ventures. This investment will support the development of cutting-edge insurance solutions to enhance access to insurance products for underserved populations in Latin America and the Caribbean, including micro, small and medium-sized enterprises (MSMEs), households, and vulnerable individuals.
The fund aims to invest in up to 15 firms across more than 10 countries in Latin America and the Caribbean, primarily focusing on Series B opportunities in key sectors such as life, health, climate, cyber, property, and reinsurance. Additionally, the fund will support companies developing enabling technologies to modernize insurance value chains, fostering efficiency and inclusivity.
Insurance is a key driver of economic stability, acting as a financial shock absorber that enables individuals and businesses to recover from unexpected setbacks. Latin America and the Caribbean has a $300 billion protection gap and one of the lowest insurance penetration rates globally — just 3.1 percent of GDP, compared to a global average of 7 percent.
This gap is widened by high premiums, limited awareness, ineffective distribution channels, and products poorly tailored to the needs of modern society. The fund aims to overcome these barriers by supporting technology-driven companies that leverage big data, artificial intelligence, and predictive modeling to create affordable, accessible and tailored protection solutions.
The fund will provide growth capital to firms offering innovative insurance solutions, while leveraging performance-based incentives to drive measurable social impact. Key impact performance indicators include increasing access to affordable protection plans, expanding coverage to previously uninsured customers, and addressing climate and health-related challenges.
IDB Invest will also provide advisory services focused on increasing access to financing for MSMEs and women-led enterprises. The advisory will strengthen knowledge on MSME segmentation and insurance needs, allowing Mundi Ventures to better target that market. Additionally, through tailored training and action plans, the fund is committed to ensuring that 100 percent of its investees align with the 2X Challenge criteria by 2027.
The project is expected to contribute to the following United Nations’ Sustainable Development Goals (SDGs), Gender Equality (SDG 5), Decent Work and Economic Growth (SDG 8), Industry Innovation and Infrastructure (SDG 9), and Partnerships for the Goals (SDG 17).
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