Most people in Africa want to use various insurance products, but are deterred by high premiums. It is not surprising that insurance penetration across the continent is marginal, with reported premiums per capita being 11 times lower than the world average, according to a McKinsey study.
The market might change as innovative products that run on micropayment or pay-per-use frameworks emerge under the support of institutions like the U.K.-funded Financial Sector Deepening (FSD) Africa.
The insurtech program will be launched in Nigeria and Ghana next year to promote innovations that will drive the adoption of insurance in the two markets and beyond.
The introduction of insurtech programs in the West African countries is in partnership with the Insurance Regulatory Authority, Tellistic Technology Services, and the country's regulator.
The insurance industry has been slow to innovate compared to the rest of the financial sector, yet Africa is experiencing a huge protection gap.
The BimaLab Insurtech Accelerator Program is going to be launched in Nigeria.
In addition to providing access to capital through venture funds and grants to early-stage insurtech startups, the company is also planning to set up an online platform where founders can share experiences, create partnerships, and gain technical support from different industry professionals.
The organization is working with eight insurance regulators to build an environment that bolsters insurtech innovation.
It's a peer learning and engagement platform for regulators that focuses on regulating for innovation and things like creating insurtech and startup ecosystems. We are excited to support the development of similar programs across the region.
The second cohort of the program graduated last Friday. Participants in the 10-week program were provided with knowledge and resources to develop and get their solutions ready for the market. Karopay and Motisure were recognized for their innovations.
For as low as 10 shillings a day, Motisure targets motorcycle commuters and riders with personal accident coverage. In East Africa, 22 million rides are served every day by boa-bodas.
Students in rural Kenya have basic medical and personal accident insurance coverage with premiums starting from less than $1 a month, thanks to Karopay's edtech insurance product Bimashule. In the event of a guardian's death, it comes with a school fee guarantee.
