- The round is led by Accion Venture Lab with participation from AAIC, Consonance, P1 Ventures, Acuity Ventures,The Continent Venture Partners, and Future Africa
- Lami’s new funding will be used to enhance the capabilities of its Digital Insurance Platform to better support low-income populations, and expand the company’s presence in Africa
Nairobi, Kenya. 05 May 2021 – Lami Technologies, a Kenyan insurance technology (insurtech) company that aims to democratize insurance products and services for low-income Kenyans, announced today it has raised $1.8 million in seed funding.
The round was led by Accion Venture Lab, Accion’s seed-stage investment initiative that provides capital and extensive support to innovative fintech startups that are improving the reach, quality, and affordability of financial services for the underserved.
Founded by Jihan Abass in 2018, Lami is an insurance platform that enables partner businesses -including banks, tech companies, and other entities – to easily and seamlessly offer digital insurance products to their users via Lami’s API. Lami connects partner organizations, with underwriters and allows them to offer a superior customer journey. Through its API, users can get a quotation for motor, medical, or other insurance products in seconds, then customize the benefits and adjust the premium to suit their needs and get their policy documents instantly.
Lami’s services are enabled by its flexible insurance rating engine and direct integration with several parties and insurance companies. Lami co-designs innovative products with its underwriting partners to offer businesses unique insurance products that can be offered to their underlying customer base to meet their needs and cash flows, such as monthly medical policies for startup employees.
Jihan Abass, CEO, Lami, said: “This funding will allow us to invest in hiring more people, improving our technology, and growing our presence across Africa so we can continue to address the persistent insurance gap. At Lami, our vision is to help improve the financial resilience of millions by making insurance products more accessible and affordable for underserved populations. By enabling our business partners to offer customized insurance solutions, we are helping them provide more value to their customers, while enabling large volumes of users to access insurance, often for the first time.”
Africa’s insurance market currently stands at a 3 percent penetration rate, expect for South Africa, and is facing modernization and innovation challenges. Most insurance providers on the continent fail to offer flexible, affordable and tailored insurance coverage that can provide a safety net for the African consumer. Low insurance uptake is partly due to the traditional distribution and administration of policies, which mainly still relies on brick-and-mortar channels where policies are sold and processed manually. This results in a longer processing cycle, poor customer satisfaction, and higher distribution costs.
Lami’s digital insurance platform leverages cloud computing, automation, and third-party service providers such as emergency and valuation, or identity and asset verification databases, to offer a comprehensive ecosystem for the businesses they partner with to develop, distribute and manage highly streamlined and competitive insurance products that are designed to meet their customers’ needs.
Since its inception, the insurtech startup has sold more than 5,000 policies and has partnered with more than 25 active underwriters, including Britam, Pioneer, and Madison Insurance, distributing more than 30 products available including medical, motor, employee benefits, and device insurance. As an innovator in the digital insurance space, Lami aims to continue diversifying its business by looking for new partners and building on its core technology.
Michael Schlein, President and CEO, Accion Venture Lab, said: “Ninety-seven percent of Africans lack access to insurance – a financial safety net that can help them build resilience against economic shocks. Lami helps address this need for consumers across Africa through its innovative approach that leverages technology and partnerships to help any business develop and sell insurance.”
“At Accion Venture Lab, we’re excited by how Lami is using technology to create a pathway for customers to purchase insurance that is specific to their needs. By embedding customized insurance within businesses that customers know and trust, Lami is making insurance accessible for underserved populations in Africa and enabling them to build financial resilience.”said Ashley Lewis, Africa Director, Accion Venture Lab
This investment highlights the strong commitment of all organizations to ensuring that financial services are made accessible and affordable for the underserved.
About Lami Techologies
Lami Technologies is an insurance technology company founded in 2018 by Kenyan entrepreneur Jihan Abass. Our mission is to break the 3 percent insurance penetration barrier in Africa. Headquartered in Nairobi, Kenya, our team of diversified talented individuals is located across five countries in Africa and Europe. Using our secure API platform, we offer our business partners innovative digital insurance solutions to help them enhance and improve the usage of insurance products while enabling them to distribute insurance to their customer base. We transform insurance policies and enable customers to tailor their coverage according to their requirements to get flexible terms and affordable payment plans. For further information, visit www.lami.world
About Accion Venture Lab
Accion’s seed-stage investment initiative Accion Venture Lab provides capital and extensive support to innovative fintech startups that improve the reach, quality, and affordability of financial services for the underserved and have the potential to scale. Backed by commercial and impact investors since the launch of its third-party fund in 2019, Venture Lab has invested in more than 50 early-stage startups that operate in 30 countries worldwide. Venture Lab is a part of Accion, a global nonprofit committed to creating a financially inclusive world, with a pioneering legacy in microfinance and fintech impact investing. Accion catalyzes financial service providers to deliver high-quality, affordable solutions at scale for the three billion people who are left out of – or poorly served by – the financial sector. For nearly 60 years, Accion has helped tens of millions of people through our work with more than 160 partners in 55 countries. For further information, visit https://www.accion.org/venturelab.