Lami Technologies, a Kenyan insurtech startup has secured $1.8 million in seed funding. The round was led by Accion Venture Lab and saw other participants including The Continent Venture Partners, P1 Ventures, Future Africa, AAIC, Acuity Ventures and Consonance.
The Kenyan-based company will deploy the raised fund to boost its digital insurance capabilities and accelerate its African footprint.
Founded by Jihan Abass in mid-2018 with the vision of breaking the 3% insurance penetration barrier in Africa, the founder was inspired by providing a safety net for the developing world, especially on the African continent.
Lami offers users an end-to-end digital insurance platform and ecosystem that enables companies across sectors to easily offer and manage insurance products to their users, through a seamless digital experience.
Also read, How Lami is democratizing Insurance in Africa
The Lami platform offers various insurance services via its API allowing underwriters to connect with consumer-facing companies to provide embedded insurance as a value add for existing customers, many of whom are uninsured.
Speaking on the closed funding, Jihan Abass said, “This funding will allow us to invest in hiring more people, improving our technology, and growing our presence across Africa as we can continue to address the persistent insurance gap.
At Lami, our vision is to help improve the financial resilience of millions by making insurance products more accessible and affordable for underserved populations.”
Stating further, the founder commented that by allowing its business partners to provide digital insurance solutions, Lami is supporting them in offering value to their customers to drive access to digital insurance on the continent.
Across the African continent, insurance penetration rates remain extremely low, leaving many vulnerable to financial stress due to unexpected emergencies.
For instance, across Africa, the penetration of insurance is less than 3% and one of the reasons for such low penetration is that current products and offerings are not tailored to customers’ needs and users do not derive much value from them.
Also speaking on the secured fund, Michael Schlein, President and CEO, Accion Venture Lab, said:
“Ninety-seven percent of Africans lack access to insurance — a financial safety net that can help them build resilience against economic shocks.
Lami helps address this need for consumers across Africa through its innovative approach that leverages technology and partnerships to help any business develop and sell insurance.”
Michael expressed his excitement on how the Kenyan-based insurtech startup is leveraging technology to establish a seamless path for underserved customers.
Through the integration of digital insurance within businesses, Lami is making insurance accessible on the continent.
Featured Image: Lami Team
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