MyCover.ai gets $1.25m to overhaul African insurance sector
Nigerian insurtech startup MyCover.ai has secured US$1.25m in pre-seed funding, which it will use to boost its in-house operations and invest in additional talent.
The capital injection is being led by Ventures Platform with further participation from Founders Factory Africa and TechStars, who are making a follow-on investment after the startup took part in its accelerator programme.
The Lagos-based insurtech will also be investing in its technology and exploring expansion opportunities in other African markets outside Nigeria.
Founded in 2021, the company provides an open insurance API that integrates directly with insurance companies to offer customers personalised insurance products. It is hoped the technology will help address pain points that exist in the region’s insurance market – including poor access and inadequate coverage, unaffordable insurance policies, and unsatisfactory customer experience.
According to the National Insurance Commission (NAICOM), only 0.5% of Nigeria's population is insured, and the number is only slightly higher when you take Africa as a whole. But the country is part of an emerging insurtech ecosystem, home to more than a dozen emerging insurtech startups, according to industry database Crunchbase.
MyCover.ai ‘at forefront of change’ in African insurance
Since launching, MyCover.ai has already secured flagship industry partnerships and achieved more than US$1m in gross written premiums (GWPs), establishing itself as a leader within the country’s digital insurance sector.
Adebowale Banjo, CEO and Co-Founder of MyCover.ai, says: "The current insurance landscape is plagued by fragmentation and inefficiencies that hinder distribution and adoption. Affordable, accessible and frictionless insurance remains a significant challenge for many customers, and we are proud to be at the forefront of change, constructing a robust infrastructure that addresses these critical issues head-on.
“We are building the rails that will power the growth and adoption of insurance across Africa, and we are delighted to have the support of our new and returning investors whose deep knowledge and extensive expertise in our region will help accelerate the attainment of our objectives."
Dotun Olowoporoku, General Partner at Ventures Platform, continues: "Adebowale and his team are reshaping the insurance landscape in Nigeria and have their eyes set on the wider African market by building the much-needed insurance infrastructure on the continent. Unlike other insurtech solutions that focus on specific areas of insurance penetration among the underserved, MyCover.ai takes a collaborative approach and offers a suite of services that cover the entire spectrum of these challenges. We are confident in their vision and operational pedigree and excited to support their growth as they continue to empower businesses and individuals through scalable and innovative insurance solutions".
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