Insurtech Startup, MyCover.ai Secures $1.25M Pre-Seed Funding Led by Ventures Platform

MyCover.ai has today announced the close of a $1.25 million pre-seed funding round, led by Ventures Platform. The round also included participation from Founders Factory Africa and TechStars, who are making a follow-on investment after the startup’s participation in its 2022 Toronto Accelerator program.

The insurtech startup says it will use this capital injection to bolster its in-house operations & tech talent, invest heavily in its proprietary technology and strategically expand its operations into other African markets.

The startup’s CEO and co-founder Adebowale Banjo said in a press statement, “We are delighted to have the support of our new and returning investors whose deep knowledge and extensive expertise in our region will help accelerate the attainment of our objectives.

Dotun Olowoporoku, General Partner at Ventures Platform noted that Adebowale and his team are reshaping the insurance landscape in Nigeria and have their eyes set on the wider African market, by building the much-needed insurance infrastructure in Africa.

“Unlike other insurtech solutions that focus on specific areas of insurance penetration among the underserved, MyCover.ai takes a collaborative approach and offers a suite of services that cover the entire spectrum of these challenges,” Olowoporoku remarks.  “We are confident in their vision and operational pedigree, and we are excited to support their growth as they continue to empower businesses and individuals through scalable and innovative insurance solutions.”

MyCover.ai is focused on addressing the pain points that exist in the African insurance market, such as the lack of access, inadequate coverage, the unaffordability of insurance products, and the poor customer experience surrounding insurance processes. By operating across three essential touchpoints, the company addresses these problems: underwriting and product development, distribution, and insurance claims, where the claims processes are streamlined for insurance companies and the end-users.

The company provides an open insurance API that integrates with leading insurance companies to offer personalized insurance products, allowing other businesses and innovators to embed these insurance products into their platforms. For startups and businesses looking to embed insurance into their offerings, MyCover.ai provides easy integration through its API and SDK, enabling seamless insurance offerings to customers and, ultimately, revenue growth.

MyCover.ai’s API integration facilitates seamless collaboration with external partners, empowering businesses from various sectors to effortlessly integrate insurance into their products and services, with the inclusion of a white label option, without incurring any additional risks or costs. These businesses are presented with the opportunity to offer insurance policies as add-ons on top of their existing core products.

MyCover.ai ensures that the insurance companies’ products are efficiently distributed through the API, offering benefits such as faster and cost-effective distribution, access to customer utilization data, simplified onboarding and policy management processes, access to new customer segments, improved claims processes, and opportunities to develop new products.

Since its launch in 2021, the technology-enabled insurance platform has emerged as a leading provider of innovative insurance solutions. With over $1M in Gross Written Premiums and strong partnerships with leading insurance providers in Nigeria, MyCover.ai is establishing itself as a market leader.

Adding to MyCover.ai’s all-encompassing range of services and support, is MyCoverGenius, a B2B platform that offers the opportunity for clients to directly purchase insurance products from the company. This novel platform addresses a common oversight by legacy insurance companies that often overlook the entrepreneurs and SMEs present in the Total Addressable Market.

With MyCoverGenius, business owners are able to conveniently and effectively cover their staff and assets, scaling up or down in relation to the growth in business operations. The company also provides low code tools for offline stores as well as its proprietary Software Developer Kit (SDK), where partners can easily distribute insurance products and elevate customer experiences with little or no tech burden on their business.

The African insurance market is on an upward trajectory, with a size that soared to $81.6B in 2022. The market size is projected to rise to $123.8B by 2028, exhibiting a CAGR of 7.19% between 2022 — 2028. Traditional insurers have, however, struggled to extend their services to the vast population, with insurance penetration remaining below par. However, with the growth of a young population, the rise of technology, including widespread smartphone adoption and affordable internet access, coupled with global opportunities and the exponential growth of fintech solutions, MyCover.ai emerges as a catalyst for change.

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