FSD Africa, a Nairobi-based organisation focused on building inclusive and resilient financial markets across the continent, has announced plans for a new Inclusive InsurTech Investment Fund (3iF) valued at between $25m and $30m.
The organisation confirmed that 3iF will be anchored by FSD Africa Investments (FSDAi), its investment arm, alongside senior equity commitments expected from commercial and strategic investors led by Zep Re.
The fund adopts a blended structure combining catalytic and commercial capital to stimulate private investment into the early-stage InsurTech market.
The new fund will target emerging InsurTech ventures across Africa that are developing solutions to improve insurance access, affordability and awareness, particularly in areas linked to climate resilience, health and financial inclusion. Its creation builds on the momentum of the BimaLab Accelerator Programme, which has supported more than 135 startups in 28 countries since its launch.
FSD Africa intends to use the 3iF fund to help bridge the persistent financing gap faced by young technology-driven insurance firms and to support their transition from early innovation to scalable commercial deployment. The fund is scheduled to launch in January 2026 and will offer growth capital to standout BimaLab graduates as well as other high-potential ventures.
Additional announcements at the summit included the launch of a new Regulatory Sandbox Eligibility Assessment Toolkit, designed to help African insurance regulators better evaluate the potential impact of InsurTech innovations. The resource aims to streamline regulatory assessment processes, reduce market entry barriers and support expanded coverage for rural communities, informal workers, low-income households and smallholder farmers.
Speaking ahead of the summit, FSD Africa director of adaptation and resilience Kelvin Massingham said, “The launch of the 3i Fund opens an exciting new chapter for insurance innovation in Africa. By investing in the next generation of insurtech pioneers, we are unlocking opportunities to expand access, affordability, and resilience for millions across the continent. Our goal is to empower visionary startups to transform how insurance works for everyone—driving inclusive growth, climate resilience, and financial security for Africa’s future.”
Commenting on the newly launched toolkit, Insurance Regulatory Authority (IRA) Kenya CEO and commissioner Godfrey Kiptum said: “By strengthening the regulatory environment, we are laying the foundation for a more resilient and inclusive insurance ecosystem for Africa’s next decade. Building regulatory readiness for innovation is key, and BimaLab’s new toolkit will be an invaluable resource not only for us here in Kenya, but for African regulators across the continent.”
The BimaLab programme, launched in 2020 by the IRA and FSD Africa, has become a leading platform promoting the growth of the continent’s InsurTech sector. Its mission is to harness technology to improve insurance penetration, especially among underserved demographics. The initiative offers technical support, access to catalytic funding and engagement with regulators to encourage the development of inclusive products.
Elias Omondi, principal of innovation for resilience at FSD Africa, added: “Africa’s protection gap is not just a market failure, it’s a capacity and capital gap. BimaLab Africa Insurtech Accelerator combines focused technical support with catalytic funding, we enable insurtechs to de-risk innovation, scale inclusive products and reach the millions who remain unprotected.”
The two-day summit brought together investors, insurers, regulators and technology leaders under the theme “Insuring Africa’s Future: Innovation, Inclusion and Investment”. Turaco CEO and co-founder Ted Pantone said: “Our vision when we launched in 2019 was to insure 1 billion people across the continent, and already, with BimaLab’s ongoing support, we have successfully expanded to Uganda, Nigeria and Ghana, and are now insuring over 1 million customers and processing over 20,000 claims. We are proof that this programme really works.”
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