A total of $500,000 (about shillings 1.8 billion) has been set aside to support local innovators of insurance products in Africa to increase the uptake of insurance.  

The Swiss Re Foundation, which has set aside the funds, will be working with the Financial Sector Deepening in Africa in partnership with the National Bank of Rwanda.

Local innovators developing innovative solutions for the insurance sector that will benefit will come from Egypt, Ethiopia, Kenya, Ghana, Morocco, Nigeria, Rwanda, Uganda and Zimbabwe.

According to a statement released by FSD Africa on Thursday, the expanded pan-African programme is targeting entrepreneurs in Insurtech (insurance technology) innovations.

Through the BimaLab Africa Acceleration programme, the aim is to grow insurance coverage among low-income consumers by investing in innovative solutions in nine African countries. 

BimaLab Africa has been devised as a model, which addresses crucial challenges facing African consumers, especially those at the base of the economic pyramid

While insurance provides a vital safety net for customers at risk of external threats including health issues, economic disruptions and natural disasters, it has, for many Africans, been unavailable. Only 3% of Africa’s GDP is driven by insurance, less than half the world average of 7%, according to the statement.

“BimaLab offers hands-on venture-building support to high-impact start-ups that improve the resilience of underserved and climate-vulnerable communities.

We are grateful for the financial support provided by the Swiss Re Foundation, which has enabled us to democratize the successful BimaLab model across the region,” Kelvin Massingham, the director of Risk and Resilience at FSD Africa, said.

He added that the programme, which combines the demonstration of global best practices with in-depth local knowledge, offers applicants a rigorous five-month programme in which they are supported with expertise, resources and support for scalability and market readiness.

“We are committed to making insurance more accessible and affordable for low-income consumers in emerging markets, and we believe that supporting programmes like BimaLab is one way we can help to achieve this goal. New digital technologies have the potential to enhance financial inclusion by providing access to unserved and underserved customers,” Stefan Huber Fux, Director at Swiss Re Foundation said.

The partnership will focus on three areas: Enhancing access to financial services increasing insurance penetration and promoting innovation in the financial sector.