InsurTech 50: Insurance Technology in Africa 2020

According to an editorial piece published by Africa Re back in October 2017, the insurance penetration rate across all African countries averaged out at around 2.8%. At the time of writing, this figure was less than half the global average, which they reported to be around 6.3%.

The insurance penetration rate is a metric derived from the ratio of insurance premiums underwritten to GDP over the course of a year. A useful measure from an economic standpoint. It is less useful at communicating the myriad other factors that are important for a thriving insurance ecosystem.

Disrupting an age-old industry

InsurTech founders don’t see the problem as simply the insurance penetration rate. Founders are using technology to address issues across the value chain, such as the availability of product, cost to the consumer, customer experience and clarity of information.

In a Baobab Insights interview; Bertand Omuga, co-founder and CEO of Kakbima, summed up the opportunity for InsurTech founders; “Technology is going to enable the insurance industry to change their focus and look into areas of better service and value for their customers rather than just competing on price”.

Our data shows activity across the insurance value chain. Insurance comparison and marketplaces, such CompareInsurance.com.ng and CompareGuru, are helping to both inform the customer as well as distribute products more widely. Whereas P2P models, such as South Africa’s Pineapple, and on-demand models such as those offered by Rocket InsurTech are helping to improve flexibility and cost to the consumer. In market’s such as Kenya, where insurance policies are often sold through agent networks, companies like Kakbima are using technology to improve transparency of the sales process.

Let us know who we missed!

The recent raises by the likes of insurance SaaS, Click2Sure, social enterprise Lumkani, digital insurance provider Inclusivity Solutions, insurance marketplace CompariSure and on-demand insurance provides JaSure highlight why this active space is good news for consumers and the wider insurance industry alike.

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This article was first published in October 2020.