FSD Africa is set to launch Insurtech accelerator programs in Ghana and Nigeria by 2022 to promote innovative products which run on micropayment or pay-per-use frameworks emerging under the support of the FSD institution in Africa which will aid the uprise of insurance in the two African markets and beyond.
The launch of Insurtech accelerator programs in West African countries was encouraged due to the introduction of the same program in Kenya earlier this year. The program was in partnership with the Insurance Regulatory Authority, the country’s regulator, and cloud solution provider Tellistic Technology Services.
“At FSD Africa, commitment to the growth of the insurance sector and involvement in grooming the next generation of insurance innovators is of major concern. The insurance industry has not been forthcoming at innovations compared to the rest of the financial sector, still, Africa is experiencing a huge protection gap,” FSD Africa’s director of risk, Kelvin Massingham stated.
He also stated that there are plans to launch the BimaLab Insurtech Accelerator Program in Ghana and Nigeria. FSD Africa also has plans to grant access to capital through venture funds and grants to early-stage Insurtech startups as well as set up an online platform where founders can brainstorm, share experiences and ideas, create partnerships, and gain technical support from different professionals in the industry.
The FSD Africa is currently working with eight (8) insurance regulators including regulators of Ghana, Malawi, Nigeria, Rwanda, and Tanzania in building an environment that strengthens Insurtech innovation across the African continent.
“It is a peer learning and engagement platform primarily for regulators around the regulation of innovations and things like creating Insurtech and startup ecosystems, but also on wider issues such ESG (environmental, social and governance). And we’re excited to support the development of similar programs across the region,” Massingham stated.
These new plans came to fruition after the graduation of the Kenya program’s second cohort last Friday. During the 10-week program, participants were granted and exposed to solid knowledge and resources to develop and get their solutions ready for the market. Twelve (12) startups in total were in the cohort, with Karopay and Motisure earning recognition for their innovations.
Motisure targets motorcycle (boda-boda) taxi commuters and riders with personal accident coverage for as low as 10 Kenyan shillings (about 9 U.S. cents) a day. Boda-bodas are a popular means of transport in East Africa, with up to 22 million rides served alone in Kenya every day.
Karopay’s Edutech insurance product Bimashule ensures that all students in rural Kenya areas have premium access to basic medical and personal accident insurance coverage, with premiums starting from less than $1 a month. It also comes with a guarantee on school fees in the event of loss of guardian.