Microinsurance gets boost as Cassava offers affordable covers after $4m raise
MICROIN SURANCE RECEIVED A BOOSt with the promise by Casava, the insurtech firm, to offer affordable insurance covers for as low as $1 across Nigeria and the African continent.
The promise followed a very successful fund raise by the firm, Nigeria’s first full-fledged digital insurance company, of $4 million, which it now wants to deploy to provide affordable and accessible insurance products for millions of Nigerians. It plans to leverage artificial intelligence and behavioural science to deliver game-changing claims and benefits products.
The fund, the largest preseed round for an African insurtech, will support the firm in customer acquisition and growth, as well as further development of the product and the technology stack.
Digital insurance in Nigeria is gaining momentum in its development using technology and acceptance, while attention from investors has continued to see more funds being pumped into the space to ensure increased insurance penetration in the country, as well as transform the insurance market in Africa.
The funding round, which is to help provide micro-insurance for millions of Nigerians, was spearheaded by Target Global, with participation from Entrée Capital, Oliver Jung, Tom Blomfield (founder of Monzo) and Ed Robinson and Brandon Krieg (founders of Stash). African founders such as Uche Pedro (founder of BellaNaija), Babs Ogundeyi and Musty Mustapha (founders of Kuda), Shola Akinlade (cofounder of Paystack), Olugbenga Agboola (co-founder of Flutterwave), Honey Ogundeyi (founder of Edukoya), Opeyemi Awoyemi (co-founder of Jobberman) and others also participated in the round.
The startup was launched in April 2021 and was founded by Bode Pedro, a veteran entrepreneur that has built many successful companies, including Veda Technology, one of Nigeria’s premier computer hardware manufacturers. It has Segun Makinde, former vice president at JPMorgan Chase and former portfolio manager for Nigeria at MEST Africa, as chief operating officer.
Casava is Nigeria’s first licensed micro insurance underwriter, creating insurance products that make it easier for income earners across the country to protect themselves against life’s unforeseen events, including job loss and health emergencies. The startup already has more than 66,000 customers, with $16 million in insurance coverage.
The product offering from Casava, whose goal is to protect customers’ income, will see subscribers insure their income with an easy-to-use subscription that starts from as little as $1 a month and then get paid monthly for six months if they lose their job, fall sick or become disabled.
It also has add ons such as Casava Health, which subscribers can take, enabling them access to more than 1,000 doctors on telemedicine and 900 hospitals across Nigeria.