Kenya’s Turaco acquires MicroEnsure in Ghana expansion
Kenyan tech-enabled insurance company Turaco has announced the acquisition of microinsurance company MicroEnsure Ghana to make the West African country its fourth market.
Launched in 2019, Turaco uses technology to increase access to affordable insurance with a seamless and customer-centric approach. The startup raised a $10 million Series A round last year and had already expanded into Nigeria and Uganda.
Under the Ghana deal, MicroEnsure will rebrand as Turaco Ghana and retain the expertise of the existing team and leadership.
Africa has an ever-growing need for innovative insurance solutions to address the significant lack of coverage on the continent. As of 2018, the insurance penetration rate in Africa stood at a meager 1.12% or 3% with South Africa. Efforts to scale quality insurance services affordably across Africa, led by startups, have resulted in marginal improvements. To scale these initiatives, consolidation within the space is crucial as it offers players more capacity and resources to better penetrate a vast and dynamic continent.