Amenli secures $1m to expand access to insurance
Amenli, a leading insurtech startup, has successfully secured $1 million in equity funding through a funding round led by Alter Global, an international VC firm with a focus on emerging markets. The round also saw participation from Digital Venture Partners (DVP), the corporate VC arm of Qatar Insurance Corporation (QIC), one of the largest insurance groups in the MENA region.
The startup, licensed by the Financial Regulatory Authority in Egypt (FRA), offers a range of affordable and accessible insurance products to cater to individuals, families, and SMEs. The startup collaborates with insurance companies to efficiently handle client claims.
With this funding, Amenli plans to introduce new insurance products targeting both existing and new customer segments while developing new distribution channels to enhance efficiency and reach. The company is also keen on strengthening its position in the B2B2C space by leveraging its Insurance API, aiming to establish itself as a trusted and innovative leader in the industry and achieve its 2024 vision.
Egypt's insurance market has relatively low penetration levels, with Gross Written Premiums accounting for only 0.6% of GDP in 2019, making it one of the lowest in emerging markets within the EMEA region. Insurers in Egypt rely on a vast network of brokers and agents to sell their services. Brokers typically earn commissions ranging from 30% to 60% and receive full commissions once insurance coverage is activated. As of June 2020, there were 81 insurance brokers and an additional nine reinsurance brokers operating in Egypt. However, digital distribution channels have been on the rise in recent years, especially accelerated by the COVID-19 pandemic, which prompted the insurance sector to invest more in digitalization to adapt to changing customer preferences and needs.