FSD Africa expands insurtech accelerator program to Ghana and Nigeria

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Most people in Africa want to use various insurance products, but are often afraid of the associated high premiums. Therefore, it is not surprising that insurance penetration across the continent remains modest, with premiums per capita 11 times lower than the world average, according to a report McKinsey Study,

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But the market may soon change as innovative products run on micropayments or pay-per-use frameworks emerge under the backing of institutions such as the UK-funded Financial Sector Deepening (FSD) Africa.

FSD Africa is set to launch the Insurtech Accelerator program in Ghana and Nigeria next year to foster innovations that will boost insurance in the two markets and beyond.

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InsurTech accelerator programs are planned in Kenya earlier this year, in partnership with Telestick Technology Services, the country’s regulator and cloud solutions provider, in West African countries.

“At FSD Africa, we are committed to the growth of the insurance sector and are excited to be involved in creating the next generation of insurance innovators. … The insurance industry has been slow to innovate compared to the rest of the financial sector, yet Africa is facing a huge security gap,” FSD Africa Risk Director Calvin Massingham told Nerdshala.

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“We plan to launch the BimaLab Insurtech Accelerator Program in Ghana and Nigeria.”

FSD Africa also plans to provide access to capital through venture funding and grants, in addition to setting up an online platform where founders can brainstorm, share experiences, form partnerships and explore various One can get technical support from industry professionals.

The organization is working with eight insurance regulators including Ghana, Malawi, Nigeria, Rwanda and Tanzania to create an environment that fosters insurtech innovation across the continent.

“It is really a peer learning and engagement platform for regulators that is primarily concerned with regulating things like innovation and creating insurtech and startup ecosystems, as well as broader issues like ESG (environmental, social and governance). And we are excited to support the development of similar programs across the region,” Massingham said.

The new plans follow the graduation of the second group of Kenya program last Friday. In the 10-week programme, participants were provided with the knowledge and resources to design and develop their solutions for the market. Twelve startups were in the group, with Karopay and Motisure landing recognition for their innovations.

Motisure Motorcycles (boda-boda) targets taxi passengers and riders with personal accident coverage for at least 10 Kenyan shillings (about 9 US cents) a day. The boda-boda is a popular mode of transport in East Africa, with 22 million rides carried out every day in Kenya alone.

Karopay’s edtech insurance product Bimashule ensures that students in rural Kenya have basic medical and personal accident insurance coverage, with premiums starting as low as $1 per month. It also comes with a school fee guarantee in the event of the death of the parent.

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