The Inclusive Insurtech Investment Fund, or 3iF, is looking to raise $30 million to make equity investments in insurance tech startups with climate, health and other types of coverage for vulnerable individuals and households. Only about 3% of Africans have any type of insurance coverage.
FSD Africa, a UK-government backed development finance initiative for Africa, anchored the fund with junior equity. Senior equity investors include African insurer Zep Re, which was launched by Africa’s largest regional economic organization, Common Market for Eastern and Southern Africa.
Accelerating insurance tech
The 3iF fund builds on an insurance tech accelerator program, Bimalab Accelerator, that FSD Africa launched in 2021 with Kenya’s Insurance Regulatory Authority and Tellistic Technology Services. The program has supported more than 135 startups in 28 countries.
“3iF aims to bridge the financing gap that prevents promising tech-enabled solutions from scaling and addressing Africa’s substantial insurance protection gap,” FSD Africa said in a statement.
Climate risk protection.
Climate finance and insurance access in under-covered regions like Africa is a growing focus for investors and financial inclusion advocates.
Last month, British International Investment and Swiss impact investment manager BlueOrchard launched the BlueOrchard Climate Action Mobilisation Fund to mobilize capital from insurance companies for climate lending to small businesses in emerging countries.
BlueOrchard also has two funds in its InsuResilience fund series, which invests in insurance solutions for farmers, small businesses and infrastructure in Asia, Latin America and Africa.
