FSD Africa’s insurtech accelerator program is now available in Ghana and Nigeria

Most Africans want to use various insurance products but are often put off by the associated high premiums. As a result, it is not surprising that insurance penetration across the continent remains low, with reported premiums per capita 11 times lower than the global average, according to a McKinsey study.

However, the market may soon change as innovative products based on micropayment or pay-per-use frameworks emerge with the help of institutions such as the United Kingdom-funded Financial Sector Deepening (FSD) Africa.

FSD Africa plans to launch insurtech accelerator programs in Ghana and Nigeria next year to foster innovations that will drive insurance uptake in the two markets and beyond.

The planned launch of insurtech accelerator programs in West African countries follows the introduction of the same in Kenya earlier this year in collaboration with the country’s regulator, the Insurance Regulatory Authority, and cloud solution provider Tellistic Technology Services.

“At FSD Africa, we are committed to the growth of the insurance sector and are excited to be a part of developing the next generation of insurance innovators.” “The insurance industry has been slow to innovate in comparison to the rest of the financial sector, yet Africa has a huge protection gap,” FSD Africa’s director of risk, Kelvin Massingham, told TechCrunch.

“The BimaLab Insurtech Accelerator Program will be launched in Ghana and Nigeria.”

FSD Africa also intends to provide early-stage insurtech startups with access to capital via venture funds and grants, as well as to establish an online platform where founders can brainstorm, share experiences, form partnerships, and receive technical assistance from various industry professionals.

The organization is collaborating with eight insurance regulators, including those from Ghana, Malawi, Nigeria, Rwanda, and Tanzania, to foster insurtech innovation across the continent.

“It is primarily a peer learning and engagement platform for regulators focused on regulating for innovation and creating insurtech and startup ecosystems, but also on broader issues such as ESG” (environmental, social and governance). “We’re also excited to support the development of similar programs like this throughout the region,” Massingham said.

The new plans come after the Kenya program’s second cohort graduated last Friday. During the 10-week program, participants were given knowledge and resources to help them develop and market their solutions. The cohort included twelve startups, with Karopay and Motisure receiving recognition for their innovations.

Motisure provides personal accident coverage to motorcycle (boda-boda) taxi commuters and riders for as little as 10 Kenyan shillings (about 9 US cents) per day. Boda-bodas are a popular mode of transportation in East Africa, with 22 million rides provided in Kenya alone each day.

Bimashule, an edtech insurance product from Karopay, ensures that students in rural Kenya have basic medical and personal accident insurance coverage, with monthly premiums starting at less than $1. It also includes a school fee guarantee in the event of the death of a guardian.