Unlike fintech, Insurtech is a largely untapped tech sector in Nigeria. Insurtech is the use of technological innovations designed to make the current insurance model more efficient. Africa’s insurance sector is valued at around $ 68 billion in GWP terms and is the eighth in the world, according to a report.
Agusto & Co. reported that the gross premium income (GPI) of the Nigerian insurance industry grew 15% year-on-year to reach 592.3 billion yen in the fiscal year ended December 31, 2020.
Most of the growth in Africa comes from pensions and individual life insurance which is the fastest growing industry on the continent; while auto insurance is the main contributor to non-life insurance, driven by the requirements for a mandatory minimum level of insurance, often third party liability in countries like Nigeria, Morocco, Kenya and the ‘Egypt.
Despite the gradual adoption of insurance, insurance companies still face challenges. Many people see insurance as something they cannot afford, as a luxury, there is lack of confidence in the system, poor product adequacy, lack of education on the benefits of insurance and many more.
Many innovators have come up with solutions to accelerate the adoption rate of insurance in Nigeria. Here are four startups driving insurance adoption through technology in Nigeria.
Curacel’s AI-powered platform enables insurers to automate claims seamlessly and also track fraud, waste and abuse (FWA). Curacel was founded with the vision of creating the much-needed infrastructure that will promote the inclusion of insurance on the continent. It is ranked among the top 100 insurtechs in the world and offers various solutions such as health insurance, travel insurance, auto insurance and security. As of 2019, the platform has enabled over 600 hospitals and over 10 insurers in several African countries to speed up claims processing by 70%, saving insurers 25% of previously lost revenue, which they can allocate to the creation of more inclusive products.
Tangerine Life provides solutions that meet your today, while securing your future. The platform has built a carefully tailored line of products that improve quality of life by merging in-depth consumer information and cutting-edge technology. You can instantly access a range of innovative insurance products to protect your loved ones in the event of life’s unforeseen events. Tangerine Life also offers a variety of products to help with financial planning to build wealth and secure the future of your loved ones.
Casava offers simple, affordable, transparent and pleasant insurance to Nigerians. The platform offers stress-free income protection insurance to protect workers’ wages in the event of job loss. Casava is licensed by the National Insurance Commission (NAICOM) as a microinsurance underwriter to underwrite and sell general and life insurance products. The platform also covers income from 30,000 and offers you up to 75% of your monthly salary for up to 6 months in the event of job loss.
AutoGenius is an insurance agency that offers its clients easy and transparent access to different types of insurance. The platform focuses on integrating technology and innovation in delivering world-class solutions to local needs.
AutoGenius offers auto insurance, insurance brokerage, comparison and claims services. The platform works with many insurance companies in Nigeria to provide fast and convenient insurance policy for Nigerians. AutoGenius has also worked with ridesharing platform, Bolt, to provide insurance coverage for drivers and drivers while using the Bolt ride.
With Nigeria’s low insurance penetration and large population, more Insurtech startups can leverage the technology to take advantage of the gaps that currently exist in the Nigerian market.