Unlike fintech, Insurtech is one technology sector that is largely untapped in Nigeria. Insurtech is the use of technology innovations designed to make the current insurance model more efficient. According to a report, Africa’s insurance industry is valued at about $68 billion in terms of GWP and is the eighth largest in the world.
Agusto & Co. reported that the Nigerian Insurance Industry’s gross premium income (GPI) grew by 15% year-on-year to ₦592.3 billion in the financial year ended 31 December 2020.
The bulk of the growth in Africa comes from pensions and individual life insurance which is the fastest growing line of business on the continent; while car insurance is the largest contributor to nonlife insurance—driven by requirements for a compulsory minimum level of insurance, often a third-party liability in countries like Nigeria, Morocco, Kenya, and Egypt.
Despite the gradual adoption of insurance, there are still challenges faced by insurance companies. A lot of people see insurance as something they can’t afford, like a luxury, there’s the lack of trust in the system, poor product fit, lack of education on insurance benefits and many more.
Many innovators have come up with solutions to fast track the rate of adoption of insurance in Nigeria. Here are four startups driving insurance adoption through tech in Nigeria.
Curacel’s AI-powered platform enables insurers to automate claims seamlessly and also track fraud, waste and abuse (FWA). Curacel was founded with the vision of creating the much-needed infrastructure that will drive insurance inclusion on the continent. It is ranked among the top 100 insurtechs in the world and it offers different solutions like health insurance, travel insurance, auto insurance and security. Since 2019, the platform has allowed 600+ hospitals and 10+ insurers from several African nations to speed up claims processing by 70%, saving insurers 25% of previously lost revenue, that they can allocate to creating more Inclusive products.
Tangerine Life provides solutions that cater to your today, while also securing your tomorrow. The platform has built a range of carefully tailored products that improve the quality of life by merging deep consumer insights and cutting-edge technology. You can instantly access a range of innovative insurance products to protect your loved ones in case of life’s eventualities. Tangerine life also offers different products to help in financial planning to create wealth and secure the future of your loved ones.
Casava provides simple, affordable, transparent and delightful insurance for Nigerians. The platform offers stressless income protection insurance to protect worker’s salaries in the event of loss of employment. Casava is licensed by the National Insurance Commission (NAICOM) as a microinsurance underwriter to underwrite and sell General and Life insurance products. The platform also covers income from as low as ₦30,000 and offers you up to 75% of your salary monthly for up to 6 months in the event of loss of employment.
AutoGenius is an insurance agency that offers its customers easy and transparent access to different kinds of insurance. The platform’s focus is on infusing tech and innovation in delivering world-class solutions to local needs.
AutoGenius offers Auto insurance, Insurance brokerage, comparison and claim services. The platform works with numerous insurance companies in Nigeria to provide a quick and convenient insurance policy for Nigerians. AutoGenius has also collaborated with ride-hailing platform, Bolt to provide insurance cover for both riders and drivers while using the Bolt ride.
With the low insurance penetration and Nigeria’s large population, more Insurtech startups can leverage technology to take advantage of the gaps that currently exist in the Nigerian market.