Browsing: Insurance industry

Insurtech boom deepening the uptake of insurance in Africa

Tech & Business

Kenya-based Pula is another distinguished insurtech making waves in the continent. It provides small scale farmers with agricultural insurance and digital products, to help mitigate the risk of enduring extreme conditions; assisting small-scale holder farmers to navigate climate risks, improve their farming techniques and boost their revenues. Since its inception in 2015, Pula has impacted 4.3 million farmers across 13 African markets.  

Furthermore, the firm has managed to raise a total of US$6million from global venture capital backers for Africa and Asia expansion. Pula won the ‘Insurtech of the year’ award at the African Insurance Awards. Its growth has enabled it to partner with the World Food Programme, to insure 3.5 million farmers across 10 African countries. 

Into the bargain, Kenya’s Lami Technologies is another acclaimed insurtech company that recently received US$1.8 million pre-seed; with the round led by Accion Venture Lab, AAIC, Future Africa, among others. The company projects to use the seed investment to hire more people, improve its technology and grow its presence across Africa.  

South Africa’s Pineapple, which is a P2P decentralized insurer that gives members fully indemnified insurance coverage; is also renowned in the continent and so is Holland Insurance, which sells car, business, house and funeral insurance. Another leading insurtech company is Octamile, which has recently received pre-seed funding of $500,000 led by EchoVC, with participation from Fiat Venture, Kesho VCs, Trade X and other local and international angels. 

www.theexchange.africa

What to expect from medical insurance in Africa post-Covid

Industry and Trade

The epidemic has solidified long-term paradigm adjustments. Second, the desire for online transactions is on the rise, which is a powerful demand driver for both consumers and businesses. As new, non-traditional insurance providers enter the market, insurers must offer digital engagement at all touchpoints.

Insurance businesses in Africa have reason to be optimistic, though, given the region’s strong economic growth. Unfortunately, the recovery has not yet been reflected in their general trajectory due to a variety of reasons.

The entry of more insurance companies into the market and the resulting decrease in premium rates are at the top of the list of those considerations. In addition to the drop in investment returns, insurers have seen a decline in their financial standing.

Furthermore, traditional insurers have been slow to adopt new technologies in the current era of digitization, which has been to their detriment. With the use of digital technology, insurers can reach out to new customers, keep their existing ones happy by communicating with them, and obtain customer feedback so they can make adjustments.