BimaLab: A foothold for inclusive insurance in Africa

Insurance provides a crucial safety net when people experience threats like natural disasters, ill health or economic disruption. In delivering such protection, especially to the poor, Africa still faces big challenges. According to the Swiss Re Institute, Africa’s protection gap, or uninsured losses, for natural catastrophes was around 80% of the total economic losses they caused in 2022, up from 58% one year earlier. These figures highlight the severity and volatility of the region’s natural disasters as well as its lack of financial protection against them. 

Digital technologies can enhance financial inclusion by reaching unserved and underserved customers, for example, with insurance. Digitisation can also bring down administrative costs, introduce new business models adapted to customer needs and enhance client value.  

In the insurance sector, however, digital-driven innovation has been slow. Obstacles include regulatory authorities’ reluctance to approve new approaches, the insurance technology (also called “insurtech”) sector’s lack of knowledge about product development and consumer behaviour, a lack of data, low entrepreneurship skills and limited financing for enterprises in the early and growth stages. 

Launched in Kenya by FSD Africa in 2020 and supported by the Swiss Re Foundation (link) since 2023, the BimaLab Africa Insurtech Accelerator Program offers hands-on venture-building support to high-impact insurtech start-ups that improve the resilience of underserved and climate-vulnerable communities.  

To qualify for the programme, early-stage start-ups must have a clear vision, be working on an innovative product or service that has potential for scale and have a committed team in place with the skills needed to execute the business plan. As BimaLab Africa focuses on addressing problems faced by vulnerable communities and businesses, it gives priority to enterprises that address challenges related to climate change, health and gender as well as obstacles faced by micro, small and medium enterprises.  

Once selected, start-ups enjoy access to a structured learning environment, mentorship, funding connections and a network of like-minded entrepreneurs, financiers, tech companies and regulators that can help them grow their businesses.  

In this extension of the Foundation’s support through 2025, BimaLab will expand its footprint to accelerate 55 insurtechs in a total of 15 African countries. It will build strong innovation ecosystems by activating investors, capacity-building networks and corporate institutions to unlock capital, attract talent and share knowledge about insurance solutions tailored to those communities’ needs. 

The goal of the BimaLab Africa Insurtech Accelerator Program is to create an insurtech innovation ecosystem that supports the growth of insurtechs; reaches underserved markets, communities and households; creates an enabling regulatory environment and improves customer value. Participating start-ups are expected to support improved resilience by insuring a total of around 200 000 people.  

The programme’s impact on resilience will be measured by tracking the insuretechs’ reach, organisational strength and financial leverage. FSD Africa will also measure any impact on the growth and strength of the financial ecosystem, for instance, by tracking the number of countries with responsive insurance regulation.  

Know more about the applications and the initiative

FSD Africa - Making finance work for Africa's future

Kacha Digital Financial Services - FSD Africa

Trash to Resilience: How BimaLab boosted Soso Care’s unique microinsurance intervention - FSD Africa

KaroPay: ‘BimaLab accelerator refined our start-up idea’ - FSD Africa

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