- The Bimalab Africa program is an innovation that brings together insurance innovators, technology partners, insurance firms, investors, and regulators.
- BimaLab Africa will expand its footprint to accelerate 55 insurtechs in 15 African countries.
- The initiative is dedicated to tackling pressing issues such as climate change, health, and gender disparities in the sector.
The Bimalab Africa Insurtech accelerator program has received $600,000 (about KSh85.9 million) in funding to expand its operations across Africa. Following the fresh financing round by the Swiss Re Foundation, the program is now set to grow to cover 15 countries across the African continent from the initial 10 countries covered in the 2023 program.
The program offers hands-on venture-building support to high-impact Insurtech start-ups that improve the resilience of underserved and climate-vulnerable communities.
The initiative is dedicated to tackling pressing issues such as climate change, health, and gender disparities while also addressing the challenges micro, small, and medium-sized enterprises face.
With Africa’s protection gap for natural catastrophes soaring to 80 per cent of total economic losses in 2022, up from 58 per cent the previous year, the urgency of bridging this gap with tailored insurance solutions cannot be overstated.
Swiss Re Foundation director Stefan Huber Fux says this highlights the severity and volatility of the region’s natural disasters and its lack of financial protection against them.
“Insurance provides a crucial safety net when people experience threats like natural disasters, ill health or economic disruption. We are proud to scale our partnership with BimaLab Africa, an initiative we strongly believe in,” said Huber Fux.
In extending the Foundation’s support through 2025, BimaLab will expand its footprint to accelerate 55 insurtechs in 15 African countries.
It will build a robust innovation ecosystem by activating investors, capacity-building networks, and corporate institutions to unlock capital, attract talent and share knowledge about insurance solutions tailored to those communities’ needs.
Bimalab Africa Partners
Bimalab Africa program is a unique programme bringing together insurance innovators, technology partners, insurance firms, investors, and regulators to work in concert in unlocking industry bottlenecks in modernising insurance services.
Previously, Bimalab Africa had chapters supporting insurtechs in Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria, Rwanda, South Africa, Uganda, and Zimbabwe.
The new countries where the programme seeks to spread its wings are Tanzania, Tunisia, Senegal, Zambia, Malawi, and Somalia.
FSD Africa Principal Innovation and Resilience and Bimalab Africa Programme Lead Elias Omondi says the impact of the programme has been significant over the last four years in expanding the reach of the program and playing a catalytic role in innovation by developing products for vulnerable customers and attracting investors to insurtech startups.
“We have supported 63 startups since 2020 and facilitated development of 3 regulatory sandboxes. Furthermore, investors have supported ten ventures providing over US$10 million in funding and over 40 products developed have reached more than 3 million new customers reached” said Elias Omondi, Principal from FSD Africa.
Insurance penetration in Africa has been lagging compared to other parts of the globe at only 3 per cent compared to the world average of 7 per cent. Innovation and technology are expected to be critical in addressing the challenge.
The African perspective
In recent years, Africa has seen a surge in innovative health startups addressing diverse healthcare challenges across the continent. From telemedicine platforms connecting patients with doctors to mobile health applications providing vital health information, these startups are revolutionizing healthcare delivery.
However, amidst this innovation, one critical aspect often overlooked is insurance coverage for both the startups themselves and the populations they serve.
Insurance plays a pivotal role in mitigating risks and ensuring the sustainability of health startups. For these emerging ventures, securing insurance coverage can safeguard against unexpected liabilities, such as malpractice claims, data breaches, or operational disruptions.
Moreover, insurance can attract investors by offering a safety net against potential losses, thereby fostering a conducive environment for growth and investment in the healthcare sector.
Read also: Kenya-based eye care startup, Lapaire, secures $3M in funding for growth
Underserved communities in Africa
On the other hand, insurance also holds immense promise in enhancing access to healthcare for underserved communities across Africa.
Health insurance schemes can provide financial protection to individuals, allowing them to seek timely medical care without facing catastrophic out-of-pocket expenses.
By partnering with health startups, insurance companies can leverage technology to streamline processes, improve efficiency, and extend coverage to remote areas where traditional healthcare infrastructure is lacking.
However, despite its potential benefits, insurance uptake among health startups in Africa remains relatively low. Challenges such as affordability, lack of awareness, and regulatory barriers hinder the integration of insurance solutions into the operations of these startups.
Additionally, the complexity of insurance products and the absence of tailored offerings for startups further exacerbate the issue.
To bridge this gap, stakeholders need to collaborate to develop innovative insurance solutions tailored to the needs of Africa’s health startups.
This includes crafting flexible insurance packages that address the specific risks faced by these ventures while remaining affordable and accessible.
Regulatory frameworks should also be adapted to encourage the adoption of insurance among startups, fostering an environment conducive to growth and innovation.
In conclusion, insurance holds immense potential in bolstering the resilience of Africa’s health startups and expanding access to healthcare services across the continent.
By embracing insurance solutions tailored to their unique needs, startups can navigate risks more effectively while contributing to the broader goal of improving healthcare outcomes for all Africans.
Collaborative efforts between insurers, startups, governments, and other stakeholders are essential in realizing this vision and unlocking the full potential of Africa’s burgeoning health innovation ecosystem.
