Lami Technologies, a Kenyan insurance technology (insurtech) startup, has raised $1.8 million in seed funding to help low-income Kenyans gain access to insurance products and services.
Accion Venture Lab’s seed-stage investment fund, which offers financing and robust resources to creative fintech companies that improve the scope, efficiency, and affordability of financial services for the underserved, led the round.
Lami’s services are made possible by its adaptable insurance rating engine and direct integration with a variety of parties and insurers. Lami collaborates with its underwriting partners to provide new solutions that allow companies to sell exclusive insurance products to their existing customer base, such as monthly medical benefits for startup workers, with customized choices to suit their needs and cash flows.
“This funding will help us to invest in recruiting more staff, developing our infrastructure, and expanding our footprint across Africa as we continue to resolve the persistent insurance gap,” said Lami CEO Jihan Abass. Our vision at Lami is to help millions of people boost their financial resilience by making insurance policies more available and affordable to underserved people. We help our business owners bring greater value to their clients by allowing them to deliver personalized insurance options, while also enabling vast numbers of consumers to purchase insurance, many for the first time.”
This investment demonstrates both organizations’ deep dedication to making financial services available and affordable to the underserved.
The conventional delivery and administration of policies, which also mostly rely on brick-and-mortar networks where policies are distributed and handled manually, contributes to low insurance uptake. As a consequence, the production time lengthens, customer loyalty suffers, and delivery costs rise.
Lami’s digital insurance infrastructure combines cloud computing, automation, and third-party service providers such as disaster and assessment databases, as well as identification and asset authentication databases, to provide a robust environment for companies to create, sell, and administer highly streamlined and affordable insurance solutions that are tailored to their customers’ needs.
Since its inception, the insurtech company has sold over 5,000 policies and collaborated with over 25 participating underwriters, including Britam, Pioneer, and Madison Insurers, to distribute over 30 offerings, including medical, auto, employee compensation, and computer insurance. Lami intends to continue diversifying its market as a digital insurance pioneer by seeking out new partners and enhancing its core technologies.
“Ninety-seven percent of Africans lack access to insurance – a financial safety net that will help them develop resilience against economic shocks,” said Michael Schlein, President and CEO of Accion Venture Lab. Lami’s innovative approach, which leverages technologies and alliances to help every company grow and market insurance, helps customers across Africa meet this need.”
“At Accion Venture Lab, we’re impressed by Lami’s use of technology to allow consumers to buy insurance tailored to their individual needs. Lami is making insurance available to underserved communities in Africa and empowering them to create financial stability by embedding personalized insurance within companies that consumers know and trust, Accion Venture Lab’s Africa Director, Ashley Lewis, said.
Except for South Africa, Africa’s insurance industry has a 3 percent penetration rate and is facing modernization and innovation challenges.
The majority of African insurance companies struggle to have versatile, affordable, and personalized insurance coverage that can serve as a safety net for African consumers.