InsurTech startup Inclusivity Solutions is bullish about international expansion

South African InsurTech startup Inclusivity Solutions has not sold a single policy in its native country, but has already spread across Africa and is now looking to go beyond the continent.

Inclusivity Solutions develops and operates digital insurance solutions.

In an interview with Disrupt Africa, founder Jeremy Leach explains all Inclusivity Solutions’ products are all hospital cash offerings, meaning that customers spend a certain threshold amount with the mobile operator partner it is a client of, it will qualify for hospital insurance the following month.

“This is the loyalty cover which does not require the customer to pay a premium,” Leach told Disrupt Africa. “The insurance product offers the customer cash back if they spend three or more days in hospital and this is deposited into the customer’s mobile money account for them to use as they please. The upsell product is offered to the customer at a small premium and allows the customer to double or triple their cash back or add family members.”

The InsurTech startup closed the first tranche of a Series A round by attracting $1.5m earlier this year.

Inclusivity Solutions aims to use the money to expand more across Africa as well as further afield into Asia, Eastern Europe and Latin America.

The news comes as the African FinTech scene has going from strength to strength ever since M-Pesa was launched in Kenya 2007, predominantly by tapping into the opportunities surrounding servicing the continent’s underbanked population.

However, while FinTech investments in Africa are growing, InsurTech enterprises have attracted a reasonably small part of that.

According to FinTech Global’s data, InsurTech businesses have only attracted 8.9% of all FinTech deals in Africa since 2014.

In comparison, the payments and remittances segment has picked up 39.8% of the 168 deals in the sector during that period. Just the a few weeks ago, Interswitch, the Nigerian digital payments firm, reached a $1bn valuation after Visa reportedly bought a 20% stake in the business.

Moreover, Inclusivity Solutions is not the only FinTech enterprise looking to expand into South America.

As FinTech Global has previously reported, Latin America is attracting both increasing investment levels as well as the interest of companies like Stripe and Revolut who are looking to set up shop in the continent.

Copyright © 2019 FinTech Global

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