FSD Africa, a non-profit company, funded by the UK’s Department for International Development, has resorted to working with Nigeria to raise the insurance penetration.
The company has partnered with the Nigerian insurance industry regulator to launch BimaLab Insurtech Accelerator, an insurance innovation hub that would give opportunity for insurtech innovators to bring their ideas to life.
This development is targeted at market development to improve the performance of insurance in the country.
What they are saying about the investment
Speaking at the virtual launch of the programme, Kelvin Massingham, Director, Risk and Resilience, FSD Africa expressed excitement to be supporting the launch of BimaLab in Africa. According to him, what is important to the company is addressing sustainability challenges in Africa’s financial market and taking action to solve them.
Stating that his team is looking at developing resilience in Africa with insurance being one of the main channels for that, he noted. “When you look at the insurance penetration across Africa, it clearly states that there is a big gap but in order to solve that challenge, we need different approaches. We need innovation so that we can develop solutions that are well suited to customers that are emerging and developing products that are appropriate and affordable.
“The current industry depicts a slow- to-innovate one due to the operating system and high operating cost that makes it difficult to serve the low income segment, so we are looking at the insurtech and ecosystem to develop top of solutions that we need to overcome these challenges.”
Ben Llenwellyn-Jones, Deputy High Commissioner to the UK commission in Nigeria also expressed appreciation to NAICOM for its effort in bringing insurance to the underserved and excluded as the economic shock and the aftermath of covid-19 has made everyone realized that the innovative approach is needed. He added that the partnership between FSD Africa is crucial in fostering the development of an insurtech ecosystem with focus on growth inclusion and supporting the creation of strategic license.
Thomas Olorundare, Commissioner for insurance, National Insurance Commission of Nigerian, NAICOM said the development would help to enhance insurance delivery in Nigeria. “With the intervention of Bimalab in our service delivery, consumers of insurance will begin to enjoy good customers experience through appropriate channels that meets their need. It is also expected that the education of the public and a listing of insurance service on how to make claims will be done. We have found solution in insurtech and we are glad to know that with BimaLab support, there will be acceleration of insurance technology,” he said.
What you should know
- Bimalab; supported through FSD Africa, was first initiated in Kenya and the programme is directed at ensuring insurtech space grow and scale to enable them turn ideas into validated products and solutions that are ready for investors
- The programme is also aimed at creating an environment that creates enhanced partnership between the incumbent insurance companies and insurance brokers who want to change the insurance ecosystem.
- FSD supports companies with financial and technical support to the insurtechs that will be providing solutions within the Nigerian market
