The Financial Sector Deepening (FSD) Africa initiative, which is sponsored by the United Kingdom, plans to create Insurtech accelerator programs in Ghana and Nigeria next year to promote ideas that will drive insurance demand in the two countries and beyond.
The majority of individuals in Africa want to use various insurance products, but the related costly costs typically prevent them.
As a result, it’s unsurprising that insurance penetration in the region is still low, with projected premiums per capita 11 times lower than the global average, according to a McKinsey report.
However, the industry may soon alter as novel micropayment or pay-per-use products arise with the help of organizations such as the UK-funded Financial Sector Deepening (FSD) Africa.
The anticipated establishment of Insurtech accelerator programs in West African countries follows the debut of such programs in Kenya early this year, in collaboration with the country’s government, the Insurance Regulatory Authority, and cloud solution vendor Tellistic Technology Services.
Kelvin Massingham, FSD Africa’s director of risk, confimred that the company is committed to the insurance sector’s growth and is delighted to be a part of nurturing the next generation of insurance entrepreneurs.
He also mentioned that FSD is intending to start the BimaLab Insurtech Accelerator Program in Ghana and Nigeria, despite the fact that the insurance industry has lagged behind the rest of the financial sector in terms of innovation.
FSD Africa also plans to supply early-stage Insurtech firms with money using venture funds and grants, as well as an online platform where entrepreneurs can brainstorm, exchange ideas, build partnerships, and receive technical help from different industry experts.
The group is collaborating with eight insurance regulators throughout the continent, including those in Ghana, Malawi, Nigeria, Rwanda, and Tanzania, to create an atmosphere that encourages Insurtech innovation.
It is a social networking and engagement tool for regulators, according to Massingham, largely focused on regulating for innovation and things like Insurtech and startup ecosystems, but also on broader concerns like environmental, social, and governance (ESG). FSD is looking forward to assisting in the creation of similar programs in other parts of the area.
The fresh ambitions come after the second cohort of the Kenya program graduated last Friday. Participants were given expertise and resources to create and promote their solutions during the course of the 10-week program.
The cohort had twelve startups, with Karopay and Motisure receiving awards for their inventions.
Motisure provides personal accident coverage for as little as 10 Kenyan shillings (approximately 9 cents) each day to motorcycle (boda-boda) taxi commuters and riders. Boda-bodas are a prominent mode of transportation in East Africa, with Kenya alone serving 22 million rides every day.
With premiums commencing at far less than $1 per month, Karopay’s edtech insurance product Bimashule ensures that students in remote regions of Kenya receive basic medical and personal accident insurance coverage. It also includes a school fee guarantee in the case of the death of a caregiver.
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