- With roughly 80% of economic losses from natural disasters remaining uninsured in 2022, up from 58% in 2021, the continent faces unique coverage needs that FSD Africa is looking to underwrite.
- To date, the BimaLab Accelerator Program has supported 135 startups in 28 African countries.
- A new Regulatory Sandbox Eligibility Assessment Toolkit has also been unveiled.
FSD Africa has stirred the insurance innovation space with the rollout of a new Inclusive Insurtech Investment Fund (3iF) worth $25 – 30 million, paving the way for private sector players eager to develop insurance technology to accelerate innovation projects, closing the huge gap in the sector.
According to an update made in Nairobi on Wednesday, Kenya FSD Africa says 3iF is a pan-African venture capital fund that favors early-stage insurtech startups focused on expanding current insurance access, affordability and awareness, with a particular focus on climate resilience, health and financial inclusion among underserved populations.
The announcement was made during the BimaLab Africa Insurtech Summit held in Nairobi from November 26 to 27. This initiative will build on the BimaLab Accelerator Program, which has supported more than 135 startups in 28 countries to date. 3iF aims to bridge the financing gap that prevents promising technology-based solutions from scaling and address Africa’s substantial insurance protection gap.
FSD Africa blended financing structure
The financing, which will be available from January 2026, offers a blended structure that brings together junior equity from catalytic investors, anchored by FSD Africa Investments (FSDAi), the investment arm of FSD Africa, with senior equity from commercial and strategic investors led by Zep Re.
Furthermore, 3iF is structured to provide investment growth capital to successful BimaLab graduates and other promising ventures, complementing the BimaLab ecosystem.
“The launch of the 3i Fund opens an exciting new chapter for insurance innovation in Africa. By investing in the next generation of insurtech pioneers, we are unlocking opportunities to expand access, affordability and resilience for millions across the continent. Our goal is to empower visionary startups to transform the way insurance works for all, driving inclusive growth, climate resilience and financial security for Africa’s future.” Kelvin Massingham, Director, Adaptation and Resilience, FSD Africa, explained.
At the same time, a new Regulatory Sandbox Eligibility Assessment Toolkit was also launched at the BimaLab Insurtech Accelerator Summit, providing a practical resource tailored to help insurance regulators on the continent quantify the impact new insurtech innovations will have on their economies. This tool will be critical in supporting investment, testing and the development of impactful innovations within regulatory sandboxes.
Streamline how regulators evaluate emerging insurtech models
According to the market update, this new tool is designed to streamline the way regulators evaluate emerging insurtech models, lower barriers for startups and ultimately expand access to affordable risk protection, especially for informal workers, rural communities, smallholder farmers and low-income households.
“By strengthening the regulatory environment, we are laying the foundation for a more resilient and inclusive insurance ecosystem for the next decade in Africa. Building regulatory readiness for innovation is critical, and BimaLab’s new toolkit will be invaluable not only to us here in Kenya, but also to African regulators across the continent,” said Godfrey Kiptum, CEO and Commissioner, Insurance Regulatory Authority (IRA)Kenya.
Striving for inclusive insurance systems across Africa
Currently, statistics show that Africa is facing a huge gap in insurance penetration. In many economies, insurance penetration is below 3 percent, exposing millions of individuals, small businesses and, in the worst cases, vulnerable communities to risks from which they cannot quickly recover.
Industry data shows that about 80 percent of economic losses in Africa due to natural disasters remained uninsured in 2022, compared to the 58 percent reported in 2021.
Launched in Kenya in July 2020 by the Insurance Regulatory Authority and FSD Africa, the BimaLab Accelerator Program has grown into one of the continent’s top insurance innovation platforms. It aims to leverage technological innovations that increase insurance penetration among low-income and underserved communities and is a key part of FSD Africa’s mission to build resilient, inclusive financial markets on the African continent.
Also read: Africa Climate Ventures receives $1.08 million from FSD Africa
Development of insurtech products
BimaLab is designed to drive innovation and accelerate the development of insurtech products and distribution, help startups scale and develop market-ready solutions, and support regulatory engagement and inclusivity across the insurance industry.
“Africa’s protection gap is not just a market failure, it is a capacity and capital gap. BimaLab Africa Insurtech Accelerator combines targeted technical support with catalytic financing, we enable insurtechs to de-risk innovation, scale inclusive products and reach the millions who remain unprotected,” Elias Omondi, Director of Innovation for Resilience explains.
The two-day BimaLab Africa Insurtech Summit 2025, held in Nairobi, brought together insurers, regulators, investors, innovators, technology partners and development leaders driving the transformation of insurance across Africa, under the theme ‘Insuring Africa’s Future: Innovation, Inclusion and Investment’.
Ted Pantone, CEO and co-founder of Turaco, a Kenyan microinsurance company that showcased its innovative insurance products at the Summit, noted: “Our vision when we launched in 2019 was to insure 1 billion people across the continent, and with the continued support of BimaLab, we have already successfully expanded into Uganda, Nigeria and Ghana, and now insure over 1 million customers and process over 20,000 claims. We are proof that this program really works.”
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