German based GreenTec Capital has announced its investment into Bismart Insurance from Kenya. The company plans on leveraging on cutting edge technology, whereby Bismart Insurance provides a digital interface to offer insurance products and services across Africa.
The company will start with a small range of service and products that will be expanded quickly. The interface being developed by the Bismart team will allow the distribution of insurance products across all of Africa, facilitating the rapid roll-out and scaling of the business.
This platform will also help Bismart to increase efficiency and transparency through the implementation of Blockchain technology “Smart-Contracts” in order to facilitate policy management and benefit from the security of decentralized databases.
Bismart has already benefited from the commitment of an initial investor to develop its platform and expects to be able to launch its service offerings by the start of Q4.
In 2017 the uptake of insurance policies was below 3 per cent, with lack of innovation and cost blamed for this slow growth. In 2016 the overall insurance penetration was 2.75 per cent compared to 2.78 per cent in 2015 according to the Association of Kenya Insurers annual report. The world average insurance penetration in 2016 was six per cent.
One of the biggest challenges for innovative startups in Africa is the implementation of solutions with distribution channels that have Pan-African reach. Bismart’s application of emerging technologies solves this problem brilliantly, while disrupting the insurance value chain from customer acquisition to risk management.” GreenTec’s CEO Erick Yong.
GreenTec Capital Partners invests in African start-ups and SMEs with a focus on combining social and environmental impact with financial success.
