ImpactAlpha, April 12 — Hispanic and Black drivers with clean driving records who live in majority-Hispanic and Black neighborhoods pay more for insurance than white drivers in majority-white neighborhoods with negative marks on their driving records.
Insurance products from Austin, Texas-based Sigo Seguros (“I’m still safe”) remove unnecessary fees and such biased rating factors. The company’s underwriting process doesn’t look at drivers’ immigration status, credit score, level of education or type of employment.
The company raised $5.4 million in seed financing backed by Revolution’s Rise of the Rest Seed Fund, Fiat Ventures, Chingona Ventures and others. The funding will help Sigo Seguros expand beyond Texas. The company raised $1.5 million in pre-seed funding last year.