With a drop in insurance penetration from 2.78 to 2% between 2019 and 2020 in Africa, the region's potential for insurance remains largely untapped while the global penetration rates rise.
Some of the challenges to increased adoption in the continent have been described to include low income, low awareness level, failure to embrace digital technology, high level of financial exclusion, lack of infrastructural and distribution channels, and data shortage among others listed by Tope Smart, president, African Insurance Organization (AIO).
To change the narrative and widen access to insurance for Africans and other emerging markets, Turaco, an insurtech startup from Kenya, has raised $10 million in its Series A funding round, to mass market insurance adoption on the continent.
- Turaco targets underserved customers and low-income earners with its affordable insurance options. It enables companies to integrate insurance into their products and services at no additional cost or risk. Companies can integrate their existing payment processes to receive premiums from the insurtech.
- Founded in 2019, Turaco is a distributor, broker, and interface between the underwriter and the end users. It helps people to stay off the fear of financial shocks when health challenges arise.
- It uses a B2B and B2B2C model to partner with companies and provide their employee pool with tailored medical, life, asset, and vehicle insurance packages which have reached up to half a million lives in Nigeria, Kenya, and Uganda.
- It has delivered insurance packages for brands like M-KOPA, Sun King, One Acre Fund, Tugende, and VisionFund among others.
- AfricInvest led the funding round with participation from Novastar Ventures, Enza Capital, Global Partnerships, Zephyr Acorn, Operator Stack, Asi Ventures Limited, and Push Ventures.