Toyota Tsusho Corporation has announced an investment in Kenyan telematics insurance provider AiCare Group. A press release reveals that Toyota Tsusho will offer the investment via its corporate venture capital subsidiary Mobility Investment SAS through a convertible notes investment. However, the details of the amounts and terms of the investment are yet to be revealed.
The investment in the company is a vote of confidence in the synergy between telematics insurance and connected services in Africa, accelerating the penetration of telematics in the continent’s insurance sector. Toyota Tsusho will also collaborate with AiCare to deploy its solution at a regional level, riding on Toyota’s vast automotive network in Africa.
Speaking to The Kenyan Wallstreet, AiCare Co-founder and CEO Arthur Mulwa said the startup would use the investment to expand its team, invest in research and development, and offer more value to its customers.
“We are looking to use the investment for three things; [to] grow the team, working capital to make us more efficient around providing value to our customers and R&D to continue expanding the breadth of our solution with well developed features”
AiCare CEO Arthur Mulwa
The AiCare Solution
AiCare uses a data-driven driven approach to calculate a driver’s accident risk score, allowing insurers in the motor vehicle to calculate bespoke premium rates based on real-time data on driver’s behaviour and distance travelled. Additionally, their solution provides incentives for good driving behaviour, cutting the premium costs for good drivers and reducing the risk tied to motor insurance for insurance service providers. This is opposed to industrywide practices which calculate motor insurance based on vehicle value, with single and flat rates, exposing good drivers to relatively high premiums and doing little to preventing traffic accidents.
Further, data analysis by the insurtech takes into account the unique Africa road conditions, offering practical and appropriate risk analysis for customers in the continent.
“Our goal is to continue servicing the mobility sector with innovative solutions on insurance, safety and location based services,” Arthur added.
Listen to the podcast below to learn more about the AiCare solution.
