Proper from the launch of its first product in 2020, Kenyan insurtech Lami Applied sciences got down to improve insurance coverage penetration in Kenya and the remainder of Africa. They started on this path by constructing and distributing an end-to-end digital insurance coverage platform and API that allowed companies in several sectors to create tailor-made insurance coverage options for his or her clients.
With its API platform gaining floor within the insurance coverage area, the startup can be planning to offer tech options that can digitize brokers and brokers too, serving to them streamline their operations — to succeed in a large buyer base and promote on-line. These plans additionally embody enabling the digitization of conventional insurers as innovation continues to form the business.
Talking to Techcrunch, Lami’s founder and CEO, Jihan Abass, additional introduced plans to supply extra insurance coverage product traces, whereas additionally revealing that the startup has made an entry into Egypt and Nigeria. All this towards the backdrop of a $3.7 million seed extension raised in a spherical led by Harlem Capital — which invests in minority and girls founders.
Different traders that participated within the spherical contains early-stage VC agency Newtown Companions, Peter Bruce-Clark, a companion at New York’s research-driven enterprise capital firm Social Impression Capital, Caribou Honig and Jay Weintraub of InsureTech Join, a networking platform for insurtech innovators, and senior members from Exotix Advisory, a company finance and mergers and acquisition boutique centered on rising markets. The most recent funding provides to the $1.8 million seed funding the insurtech raised final 12 months.
Talking about its development methods, Ms. Abass affirmed the agency’s plans to constantly innovate as they discover new methods of accelerating insurance coverage penetration throughout the continent – which presently stands at beneath 3%.
“On the expertise facet we wish to cater to all the insurance coverage ecosystem. So, it’s not solely the digital platforms that wish to promote insurance coverage merchandise, but additionally to assist present gamers be extra environment friendly of their distribution of merchandise, permitting them to play a task in growing the insurance coverage penetration stage. This contains brokers and brokers – we’re wanting into how we are able to empower them to promote extra insurance policies,” she mentioned, whereas including that Lami is utilizing the funding to rent, fast-track its growth plans and to drive underwriter partnerships.
Explaining their funding in Lami, Harlem Capital principal Gabby Cazeau mentioned: “We imagine the following wave of fintech will embed monetary services and products like insurance coverage right into a buyer’s buy expertise. Lami’s method to serving folks by way of strategic companions in e-commerce and finance is the easiest way to construct belief with customers and ship insurance coverage in a seamless, accessible method to Africans throughout the continent.”
Lami co-designs merchandise with its underwriting companions, presently 25 in quantity, who assist use its API to facilitate the distribution of insurance coverage merchandise by way of a B2B2C method.
The startup’s API permits entities like banks to supply digital insurance coverage merchandise to their clients. Lami has additionally built-in its API with over 15 entities in numerous sectors, together with logistics, e-commerce, banking and fintech.
Amongst Lami’s companions is purchase now pay later startup Lipa Later, which it helps by way of insurance coverage towards cost default for the financed merchandise. The insurtech works with Sendy too to allow freight carriers in East Africa (Kenya, Uganda and Tanzania) to entry transit insurance coverage on per-trip foundation, and likewise with Kwara to make insurance coverage merchandise accessible to the over 60,000 SACCO (credit score union) members. Different purchasers are e-commerce platform Jumia, retail B2B and end-to-end distribution platform, MarketForce, and Stanbic Financial institution Insurance coverage – which makes use of Lami’s expertise to energy bancassurance merchandise.
Lami entered the market in January 2020, with a shopper going through product, Griffin insurance coverage, arguably the primary digital automobile insurance coverage platform. It then pivoted to supply a product agnostic API platform that powers digital insurance coverage merchandise. This has helped it develop its portfolio to 85,000 from 70,000 insurance policies on the finish of 2021, and quadrupled the premiums underwritten to $800,000 final 12 months — the corporate predicts that it will develop to over $2 million this 12 months.
The anticipated development will largely be fueled by growing partnerships and product traces, and the aggressive growth plans it launched into this 12 months when it entered Malawi and the Democratic Republic of Congo (DRC) after buying Bluewave. The acquisition helped Lami to faucet Bluewave’s clientele and applied sciences that allow entry to micro-insurance merchandise by way of various channels like USSD and WhatsApp chatbots.
Abass anticipates extra development alternatives with extra partnerships from tech-enabled companies and as extra insurance coverage firms digitize.
“Insurance coverage firms have realized that they can not depend on conventional distribution channels any longer; they should additionally diversify for their very own monetary wellbeing. After which additionally in terms of digital platforms, I believe they’ve additionally realized that it’s a simple manner for them to diversify their income streams,” mentioned Abass.
“The panorama has actually reworked since we launched our first product two years in the past. Persons are extra open to digital distribution channels. We anticipate to see vital development on the B2B2C facet. That is the place we see plenty of alternative as we increase into different markets.”