As technology continues to drive a revolution in every sector of the economy, the insurance sector is also witnessing a turnaround. At the heart of this change are the insurtech startups that are coming up with different solutions to make insurance more attractive.
Insurtech refers to the use of technological innovations built to make existing insurance models more efficient and effective. Through their innovative solutions, the insurtech companies are changing the perception of many Nigerians of insurance.
Interestingly, venture capitals and discerning investors are beginning to see the potential in these companies that are revolutionizing insurance with technology. While the fintech startups in Nigeria have continued to hold the ace in terms of the amount of funds they are attracting compared with startups in the other sectors, some insurtech companies have also proven their business viability and convinced investors, who have committed millions of dollars in the last one year.
All still at the pre-seed stage, here are the top 5 insurtech startups in Nigeria that have raised funds from last year to July 2022. Our ranking is based on the amount of funds raised:
Evolutics ($250,000 pre-seed funding)
Evolutics is a Nigerian insurtech startup that offers software solutions to insurance providers, from life to general to health insurance. Its funding came as the latest in the Nigerian insurtech space as the company in July 2022 announced that it had secured a $250,000 pre-seed funding.
The funding round was led by Mercurial Advisory and Dinku Transnational of Dubai.
According to the company, the Evolutics system provides a much-needed software solution for insurance companies operating in Africa. Its offering includes: An end-to-end solution cutting across core insurance administration, Finance, Actuarial, CRM, Document Management and Human Resources.
Whilst this limits the integration challenges of Insurers, it also has been built with APIs in mind allowing full flexible and customisation.
Curacel ($450,000 pre-seed funding)
Curacel is a Nigerian insurtech company with an AI-powered platform for claims processing and fraud management in Africa. The company in March last year raised $450,000 pre-seed funding.
The round was led by Atlantica Ventures and Consonance with participation from Kepple Ventures and other African angel investors.
Before the fundraising, the insurtech startup was already working with some of the biggest insurers on the continent, including AXA Mansard, Liberty Health, and Old Mutual, as well as more than 800 hospitals in Nigeria, Ghana, and Uganda.
The funding was to expand its service into other African countries and as of today, the company is now in 8 African countries serving over 15 insurers.
Octamile ($500k pre-seed funding)
Octamile is a Nigerian insurtech company enabling insurance and non-insurance businesses to protect African consumers from financial loss. The company in December last year raised $500,000 in pre-seed funding.
The round was led by EchoVC Partners, with participation from Fiat Ventures, Kesho VC, Trade X, Verraki Partners, Dale Mathias, Kyle Daley, and other local and international angels.
The Octamile solution enables non-insurance businesses to offer insurance as a feature in their pre-existing products, while insurance providers are offered the data and technology necessary to improve customer experience, reduce administrative costs and optimise the profitability of their insurance portfolio.
ETAP ($1.5 million pre-seed funding)
ETAP is a Nigerian startup that makes it easier to acquire auto insurance and file claims. In April this year, the company announced that it raised US$1.5 million in pre-seed funding to expand its staff and push car insurance adoption across Africa.
Mobility 54, Toyota Tsusho’s venture capital arm, and CFAO Group led the round, which also included Tangerine Insurance, Graph Ventures, Newmont, and other angel investors.
ETAP has insured approximately 130,000 individual trips and 500,000 kilometres of car trips since its beta launch in November 2021. ETAP makes buying and claiming car insurance as simple as snapping a photo, with drivers able to choose from a variety of daily, weekly, monthly, and quarterly plans.
The company uses machine learning to create intelligent risk profiles that determine suitable rates for each motorist, letting them save money by driving safely.
Casava ($4 million pre-seed funding)
Casava, Nigeria’s first 100% digital insurance company, secured US$4 million in pre-seed funding to provide affordable and accessible insurance products for millions of Nigerians. The company announced the funding in February this year.
Launched in 2021, Casava aims to make insurance affordable for income earners by leveraging technology, behavioural science and empathy. The startup is a vertically integrated company with a wholly-owned microinsurance carrier in Nigeria and a full technology stack to power it.
The US$4 million pre-seed funding round was led by Target Global with participation from Entrée Capital, Oliver Jung, Monzo founder Tom Blomfield and Stash founders Ed Robinson and Brandon Krieg. African founders such as Uche Pedro (founder of BellaNaija), Babs Ogundeyi and Musty Mustapha (co-founders of Kuda), Shola Akinlade (co-founder of Paystack), Olugbenga “GB” Agboola (co-founder of Flutterwave), Honey Ogundeyi (founder of Edukoya), Opeyemi Awoyemi (co-founder of Jobberman), and others also participated in the round.
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