Nigeria’s Treepz, Octamile launch insurance program for travelers
Nigerian mobility startup Treepz has collaborated with insurtech Octamile to introduce Treepz Care, an insurance program built around travel and mobility including guest protection, host protection, driver accident insurance, and benefits. This comes after an expansion to Kenya following strategic investment deals that allowed it to secure an additional $1.2 million.
Originally known as Plentywaka before rebranding in September 2021, Treepz was founded in 2019 and operates a digital platform that enables passengers to book daily rides along fixed routes. It also serves as an aggregator for bus travel companies across numerous cities in Nigeria, facilitating the transition from manual servicing and ticketing to digitalized solutions for transport operators.
Meanwhile, Octamile specializes in making insurance solutions accessible and convenient and is trusted by various B2C companies, including Gokada, Terminal Africa, Traccsystems, Messenger, DriveMe, Traction, Spreentar, and Kredibank. These companies rely on Octamile's API or widget to unlock a wide range of possibilities for both businesses and customers.
The insurance sector in Africa contributes only 3% of the continent's GDP, which is less than half of the global average of 7%. Despite this, insurance serves as a vital safety net against various external threats, including natural disasters, health crises, and economic disruptions. According to McKinsey, Africa's insurance industry is valued at around $68 billion in Gross Written Premium (GWP), lagging behind other emerging markets such as Latin America and the Caribbean. The adoption of insurance across the continent is inconsistent, with 91% of premiums concentrated in just ten countries. South Africa has the largest and most established insurance market, accounting for 70% of Africa's premiums. In Kenya, a 2019 report from the Insurance Regulatory Authority (IRA) revealed that insurance penetration had declined from 3.44% to 2.34% over the past nine years, indicating that the sector has not effectively harnessed the opportunities presented by the growing economy. These statistics underscore the existence of a protection gap, leaving households and businesses exposed to various risks and vulnerabilities.