SA insurtech Inclusivity Solutions raises $1.5m Series A extension

Daba Finance/Inclusivity Solutions series a extension

STARTUP VENTURE CAPITALNovember 8, 2023 at 11:39 PM UTC

Inclusivity Solutions, a South African insurtech startup, has secured an additional $1.5 million in a Series A extension round to bolster its pan-African expansion efforts. Established in 2015, the startup specializes in designing, constructing, and operating inclusive digital insurance solutions that are delivered through digital channels in collaboration with mobile operators, insurance firms, and various distribution partners. Their aim is to provide straightforward and cost-effective insurance coverage through mobile phones.

This recent funding round marks the third installment in their Series A funding, with the previous two tranches totaling nearly $3 million. The latest infusion was led by Goodwell Investments, an impact investment firm that has consistently supported Inclusivity in its previous fundraising endeavors.

The capital injection will play a pivotal role in realizing Inclusivity's expansion plans, which include the ambitious goal of establishing a presence in a minimum of 12 African markets by the close of 2024. Additionally, the company will continue to invest in enhancing its no-code, open-API platform. This platform empowers distribution partners and insurers to swiftly offer a comprehensive range of insurance products within a matter of hours.

Key Takeaways

Insurance penetration in Africa is strikingly low, standing at just 3% across the continent, half the global average relative to GDP. Excluding South Africa, the most insured market in Africa, this figure plunges to a meager 1.12%. In 2018, a McKinsey study comparing six African insurance regions revealed that premiums per capita in Africa are 11 times lower than the global average. The primary cause of this low uptake is the traditional, cumbersome distribution of insurance through physical channels, resulting in lengthy processing times, poor customer satisfaction, and elevated distribution costs. The rise of digital and mobile services has ushered in a transformation in Africa's insurance landscape, led by insurtech startups. These startups leverage technology to address the historical inadequacies in insurance penetration. Rather than becoming underwriters themselves, many startups concentrate on facilitating access to and distribution of insurance products, collaborating with established insurers, banks, and businesses to expand existing insurance lines or create new revenue streams. This approach drives greater adoption of insurance products without reinventing the wheel.

Goodwell Investments

Inclusivity Solutions

Insurance

Insurance technology

Insurtech

Digital Insurance