FSD Africa has unveiled a new venture fund that will invest in early-stage insurtech startups in Africa. It is targeting those building insurance solutions that improve access, affordability and awareness for underserved populations.
This includes innovations in climate resilience, health and financial inclusion.
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FSD Africa says the fund will address a critical financing gap that has slowed the growth of tech-enabled insurance models. It will build on the progress of the BimaLab Accelerator Programme, which has already supported more than 135 startups in 28 African countries.
How the 3iF Fund Will Work
The fund will use a blended structure. Junior equity will come from catalytic investors led by FSD Africa Investments, while senior equity will be provided by commercial and strategic investors including Zep Re.
The new fund will invest in promising startups graduating from the BimaLab Accelerator and other insurtechs with potential to scale. The goal is to expand insurance coverage and reduce the continent’s protection gap.
Kelvin Massingham, Director for Adaptation and Resilience at FSD Africa, 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.”
Regulatory Toolkit Launched
FSD Africa also launched a Regulatory Sandbox Eligibility Assessment Toolkit. This is designed to help African regulators assess the impact of new insurtech models, streamline sandbox approvals and encourage innovation.
According to the Insurance Regulatory Authority of Kenya, the toolkit will strengthen regulatory readiness and help expand access to affordable risk protection.
The BimaLab Accelerator aims to increase insurance penetration among low-income and underserved communities by supporting startups with product development, distribution support and regulatory engagement.
Elias Omondi, Principal of Innovation for Resilience at FSD Africa, said the protection gap is both a capital and capacity challenge. He added that BimaLab provides technical support and funding that help insurtechs build scalable and inclusive solutions.
The BimaLab Summit brought together insurers, investors, regulators, startups and development partners under the theme “Insuring Africa’s Future: Innovation, Inclusion and Investment.”
Kenyan micro-insurer Turaco showcased its products at the event. Co-founder and CEO Ted Pantone said BimaLab has played a significant role in its expansion into Nigeria, Uganda, and Ghana. Turaco now insures more than one million customers and has processed over twenty thousand claims.
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