Alexander Villanueva is Shift’s LATAM sales leader. In this installment of Four Questions we ask Alexander about his career journey, the trends shaping the LATAM insurance market, the appetite for AI adoption in the region and what he believes is next for Latin American insurers.
Can you tell us a little about your career journey and what ultimately brought you to Shift
To give this answer just a little bit of context I will say that I'm a sort of a geek for technology. I'm an engineer by education and I've always been curious about how technology works and how it impacts various industries. That’s been a defining element of my journey since the beginning of my career.
I started working in Colombia but was incredibly curious about the greater Latin American market. So, I moved to Mexico. It was incredible to learn about the different forces and market opportunities across the region and come to understand the commonalities and differences between countries that are technically in the same geography but demonstrate so many nuances that make a big difference in how you deal with companies in Brazil, or Colombia or Mexico.
And remember, I mentioned that I was always a little bit of a technology geek? My college thesis actually focused on AI and its practical applications. So I have a background in AI. I’m developing a real understanding of how the different Latin American and South American markets operate. I thought to myself that I really want to bring these two things together and help a specific industry—I ended up choosing insurance—solve its biggest challenges using AI.
Ultimately, I ended up at Shift. I’ve been here more than five years, at this point, and it has been an incredibly interesting journey. There is still a ton of potential in the LATAM market, both from an insurance and an AI perspective. I really like to be in a position to help insurers across the region adopt solutions that help the business, and at the end of the day, help the policyholder through better customer experiences and reduced premiums.
What trends do you feel are driving the LATAM insurance industry?
As I've been fortunate enough to work in other geographies beyond LATAM, I think one of the challenges that I've seen across the region is adoption. When you compare insurance adoption in the United States, Europe or even Asia we’re simply operating at a very different level. In some places in LATAM we’re still in the first stages of insurance adoption. So, it makes sense that one common theme across the region is how to convince more people to get insurance. Even in places where insurance coverage is mandatory by law, will still see very low adoption simply because it's difficult to check if everybody has the mandated coverage. For instance, motor insurance is supposed to be mandatory in most of the countries in Latin America, but very few people actually have it. In Mexico, which is a fairly mature insurance market for Latin America, only 32% of cars/drivers are properly insured. So adoption is a huge issue. But if government mandates aren’t working, what will?
This is why I believe the adoption of insurance technology is the other big trend in the LATAM markets. Across the region, everybody now expects a kind of “Rappi experience” when it comes to customer experience—and that extends to insurance. They want to sign up for a policy on their mobile device. They want to file claims the same way. And they want near instant settlements. So the insurance companies need to be ready to offer those experiences. Clearly that’s where technology comes in.
Are you seeing an appetite to adopt AI and other advanced technologies by LATAM insurers and is that appetite being driven by consumer demand?
I believe that technology adoption has been recognized by all carriers doing business in LATAM as a key factor to ongoing success. Whether it is investment in core systems, AI or other solutions, they know that digital transformation and modernization will drive operational efficiency and exceptional customer experiences. Carriers are incredibly interested in how tech can help solve a specific pain point or improve their process. And I’ll say that AI and in particular agentic AI has captured the attention of insurers.
One thing I find interesting is that the drivers for adopting AI are coming from so many different directions. Definitely, consumer demand for seamless, near-instant experiences are forcing insurers to make investments on that front. Insurers need to keep premiums both affordable and stable to drive adoption and reduce customer churn. Consumers want the best product that suits their need and carriers need to be competitive if they want to be successful. AI is helping to bridge that gap.
What do you think is next for the LATAM insurance market?
The LATAM market is in a really interesting place. It’s established, but there’s a lot of growing, a lot of potential expansion ahead. To make this happen, more people need to want to buy insurance and remain policyholders when they do. In this environment, carriers need to continue working with InsurTech companies toward the common goal or offering better customer experiences. I think even the biggest insurers in the region are realizing that going it alone is not sustainable. Insurers are going to keep looking for partners who can help them keep customers happy while at the same time improving their own operations. They’ll look to AI and other innovative technologies as the foundation of these important initiatives.
