Africa BimaLab Insuretech Accelerator Programme

Africa is still facing several challenges particularly in delivering relevant products to customers at the base of the economic pyramid. Only 3% of Africa’s GDP is driven by insurance, which is less than half the world average of 7%. Yet, insurance provides a safety net from many external threats like natural disasters, health threats, and economic disruptions. Digital technologies are rapidly changing the insurance landscape in sub–Saharan Africa. New digital technologies have the potential to enhance financial inclusion by providing access to unserved and underserved customers. Digitization can also bring down administrative costs, introduce new business models adapted to the needs of customers and enhance client value. Innovation within the insurance sector has been slow. It is held back by regulatory authorities' reluctance to approve different approaches, by insuretechs' lack of knowledge on product development and consumer behavior, by a lack of data, low entrepreneurship skills, and low availability of finance in the early and growth stages to name a few.

Created in 2020, BimaLab aims at answering some of the key challenges of insurtech and insurance start-ups in Africa. By 2022, the program enabled 40 insurtechs in 3 countries to gain visibility and push for resources to scale their innovations. Over 500 000 customers have been reached and over USD 1 million was raised by the BimaLab insurtechs. The grant of Swiss Re Foundation was to define a path for scaling the BimaLab from 3 to 10 countries, thereby allowing deeper dive and creating a mechanism for continued technical support and funding. In 2023, it seeked to accelerate 20 insurtechs across 10 African countries with the intention of catalyzing growth and inclusive insurance penetration. The program will help turn validated insurance focused ideas to market and investor ready, and provide innovators with an enabling regulatory environment for developing their ideas, including support in starting out, training, mentorship, and coaching. It will also create a new network facilitating strategic partnerships.

The BimaLab Africa Accelerator Program aimed to close the protection gap in Africa by strengthening insurtechs and supporting regulators in ten African countries. The program provided tailored support to ventures and regulators, addressing challenges such as access to capital, technical skills, regulatory understanding, and market dynamics. The program included five learning cycles, mentorship, and in-person events in Rwanda, Ethiopia, and Kenya. Ventures increased their staff, expanded their customer base, and formed partnerships. Regulators gained insights into insurtech innovation and developed responsive insurance regulations. The program onboarded 23 ventures and saw 78% of businesses hire new staff members. The number of customers served by the businesses increased by 54% to reach 212 000, and four businesses received grants during the program. Following the success of this round, we continued our support with another round to further drive inclusive and innovative insurance solutions across the continent.

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