BimaLab Africa Insurtech Accelerator Program Gets $600,000 Support from Swiss Re Foundation

The Swiss Re Foundation recently supported the BimaLab Africa Insurtech Accelerator Program with a sum of $600,000. This grant is for Bimalab Africa to expand further in Africa.

The program was previously operating in Nigeria, Egypt, Ethiopia, Ghana, Kenya, Morocco, Rwanda, South Africa, Zimbabwe and Uganda.

Now with the support from Swiss Re Foundation, the program will be expanding to Tunisia, Tanzania, Senegal, Zambia, Malawi, and Somali.

The Goal Of The BimaLab Africa Insurtech Accelerator Program

The main goal of this initiative is to tackle important issues like climate change, health, and gender disparities. It also aims to overcome obstacles faced by small and medium-sized insurance businesses.

In Africa, there is a significant protection gap, where uninsured losses from natural disasters accounted for 80% of total economic losses in 2022.

This points out the pressing need for creative and innovative insurance solutions to close this gap and protect businesses and communities from the impact of natural disasters.

It’s very important to address this issue and ensure adequate financial support is available. With the support from the foundation, it is possible to do so.

BimaLab Africa Accelerator Program Plan To Operate Further

Swiss Re Foundation has been supporting the Accelerator program since 2023. With the extension of this support, the program can do more and go farther to positively impact the African continent. This can be done with their much needed support and create an insurtech innovative community.

The Bimalab Africa Insurtech Accelerator Program was initiated to provide venture building support to insurtech startups that sustain the underserved and climate-vulnerable communities and businesses.

It was launched in 2020 and one of its major aims is to create an environment where investors, innovators, entrepreneurs, insurance firms and regulatory bodies can work together for the well being of the communities and as a whole, Africa.

“Insurance provides a crucial safety net when people experience threats like natural disasters, ill health or economic disruption. We are proud to scale our partnership with BimaLab Africa, an initiative we strongly believe in.

Bimalab Africa supports the growth of insurtechs, their reach to underserved markets, communities and households. It creates an insurtech innovation ecosystem in Africa. ” said Stefan Huber Fux, Director of the Swiss Re Foundation.

“Bimalab Africa is creating an insurtech ecosystem that empowers startups to reach previously underserved markets,” said Elias Omondi, Bimalab Africa Programme Lead.

“This expansion will enable us to have a wider impact and contribute to a more resilient Africa.”

With the support Bimalab Africa has gotten from the Swiss Re Foundation, the program can go further faster with more results as Africa is already lagging behind in the insurance sector compared to other continents. The backing of the Re Foundation will further advance the growth of high-impact insurtechs through introducing and scaling innovative products and services to the underserved African market.

The Cause Of Low Awareness Concerning The Program

According to a statement released by FSDAfrica, it says “Low awareness and low employment levels in the formal sectors. This coupled with a lack of trust and experience with traditional insurance institutions, have been attributed to low penetration rates in the insurance sector”.

“BimaLab Africa enables startups to enjoy access to a structured learning environment, mentorship, funding connections. And a network of like-minded entrepreneurs, financiers, tech companies, and regulators that can help them grow their businesses.

We have supported 63 startups since 2020 and facilitated development of 3 regulatory sandboxes. Furthermore, investors have supported ten ventures providing over US$10 million in funding. Through this over 40 products developed have reached more than 3 million new customers ” said Elias Omondi, Principal from FSD Africa.