- Kenya’s Bluewave Insurance Agency has announced plans to raise $6 million to expand into five new African markets to increase insurance penetration in markets characterized by low uptake.
- Company Founder and CEO Adelaide Odhiambo says the investment would be raised over the next three years.
- The insurer is partnering with Mobile Network Operators and banks to distribute affordable micro-insurance products, with plans to enter Uganda, Nigeria, Ethiopia, Malawi, DRC, Tanzania, Rwanda, and Zambia.
Kenya’s Bluewave Insurance Agency has announced plans to raise $6 million as the firm seeks to expand into five new African markets, aiming to increase insurance penetration in regions characterized by low uptake. Adelaide Odhiambo, Founder and CEO of Bluewave Insurance Agency, stated that the investment would be raised over the next three years to support the expansion plans.
Bluewave Insurance Agency’s new target markets
The company has forged partnerships with large aggregators, specifically Mobile Network Operators (MNOs) and banks, to distribute affordable micro-insurance products. Their target markets for expansion include Uganda, Nigeria, Ethiopia, Malawi, the Democratic Republic of Congo (DRC), Tanzania, Rwanda, and Zambia.
Odhiambo expressed enthusiasm about the renewed focus on introducing solutions in these new markets, stating, “We have been refining our processes, products, and partnerships. We’re thrilled to announce our renewed focus on introducing our solutions in Uganda, Nigeria, Ethiopia, Malawi, DRC, Tanzania, Rwanda, and Zambia.”
Bluewave’s robust microinsurance digital system provides low-income users easy access to a range of insurance products. Leveraging mobile technology helps reduce overhead and operational costs, resulting in significantly lower insurance premiums than those that traditional companies charge for motor, health, and life coverage.
Already successful in Kenya and Uganda, Bluewave has created insurance products embedded in widely used services, such as M-Pesa and Airtel Money.
The company recently spearheaded a tripartite partnership involving Airtel Money Uganda and AAR to launch a micro-health project. In less than one month, the project garnered over 100,000 enrollments.
“Africa has an ever-growing need for affordable insurance solutions. When we launched Ddwaliro Care, a low-cost comprehensive health insurance cover designed for individuals and large families, we saw a significant uptake in customer enrollments in just a few weeks. This is proof of the market’s readiness to take up insurance designed with them in mind,” explained Adelaide.
Read also: Africa: Is InsurTech key to boosting insurance uptake?
Insurance penetration in Africa
Insurance penetration in Africa remains extremely low, estimated to be less than 3 per cent of the continental GDP. This presents a substantial growth opportunity by providing well-researched products that cater to the needs of the African population.
Over the next five years, Bluewave aims to expand its customer base through profitable investments in consumer education. Adelaide emphasized, “Educating customers about our products has always been a key part of our business strategy.”
On the data protection front, the company is dedicated to upholding data privacy and treating clients’ insurance data as a top priority. As it expands, Bluewave continues to explore how blockchain and AI technology can be integrated into its software, making it more user-friendly while still ensuring the confidentiality of client information.
In conclusion, Adelaide expressed excitement about the expansion plans for 2024, highlighting that with the right focus and determination, overcoming challenges leads to achievements beyond imagination.
Founded by Adelaide Odhiambo in 2016, Bluewave has developed a robust micro-insurance system that provides users easy access to various insurance products and services. Currently operating in various African markets, Bluewave boasts a customer base of over 100,000 across its East African markets.
Lami Global, Bluewave non-exclusive partnership
In February 2022, the companies aimed to strengthen their market position by entering into a strategic non-exclusive partnership, granting Lami Global a license to use Bluewave’s technology to serve their mutual microinsurance partners for two years.
As the successful partnership ends, Bluewave is pleased to announce that it remains self-sufficient and continues to pursue its expansion goals to meet customer needs within the continent.
Additionally, Bluewave’s main objective is to remain a fully-fledged and independent player in the insurance industry, leveraging technology with a vision to offer easily accessible and affordable insurance products directly to the African mass market through their mobile phones.
The decision to forego the acquisition aligns with a Harvard Business Review report, which estimates that 70 per cent to 90 per cent of all mergers and acquisition deals do not succeed because they do not live up to the transaction price or integrate the new business properly.
