The news:
- The Bimalab Africa Insurtech Accelerator Program by FSD Africa has received $600,000 in funding from the Swiss Re Foundation to expand its operations across Africa.
- The programme will now include five additional African countries: Tanzania, Tunisia, Senegal, Zambia, Malawi, and Somalia, bringing the total to 15, up from ten in 2023.
- With Swiss Re Foundation support expected to last until 2025, BimaLab intends to broaden its reach to accelerate 55 insurtechs across 15 African countries.
Previously, the accelerator supported insurtechs in Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria, Rwanda, South Africa, Uganda, and Zimbabwe.
The BimaLab Africa Insurtech Accelerator Programme, launched in 2020 by FSD Africa in Kenya and supported by the Swiss Re Foundation since 2023, provides practical venture-building support to insurtech startups that help to sustain underserved and climate-vulnerable communities and businesses.
The programme fosters an ecosystem with insurance innovators, technology partners, insurance firms, investors, and regulators to secure capital, attract talent and democratise insurance solutions.
The initiative is primarily intended to address critical challenges such as climate change, health, and gender disparities, as well as roadblocks encountered by micro, small, and medium-sized insurance businesses.
With Africa's protection gap (uninsured natural disaster losses) accounting for 80% of total economic losses in 2022, up 22% from 2021, custom, innovative insurance solutions are required to bridge the gap.
This discrepancy draws attention to the gravity of natural disasters in Africa and how little money is available to shield businesses and communities from them.
Stefan Huber Fux, Swiss Re Foundation Director, noted that insurance provides a proactive safety net for individuals and businesses that experience catastrophes like natural disasters, ill health, or economic disruption.
Bimalab Africa is creating an insurtech innovation ecosystem that will support the growth of insurtechs and help them reach underserved markets, communities and households on the continent.
Written by Omoruyi Edoigiawerie, a seasoned startup attorney with over a decade of experience. Learn more.
According to Elias Omondi, Bimalab Africa Programme Lead, the initiative has supported 63 startups over the last four years and facilitated the development of three regulatory sandboxes.
Furthermore, investors have backed 10 ventures with over $10 million in funding, resulting in 40 developed products reaching over 3 million new customers across the continent.
