Kenyan insurtech firm Turaco secures US$10M Series A round fundraise

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Turaco, an insurtech promoting mass market insurance acceptance, has announced the completion of a US$10 million Series A equity investment headed by AfricInvest through the Cathay Africinvest Innovation Fund and previous partner Novastar Ventures.

Global Partnerships, Enza Capital, Operator Stack, Zephyr Acorn, Push Ventures, and Asi Ventures Limited also participated in the round.

  • Turaco, the leading insurtech promoting mass market insurance acceptance, has announced the completion of a US$10 million Series A equity investment
  • Turaco, founded in 2019, is a distributor, broker, and the primary customer interaction between the underwriter and the end customer
  • The objective of the insurtech company is to liberate people from the anxiety of financial shocks induced by unanticipated health risks

Turaco, founded in 2019, is a distributor, broker, and the primary customer interaction between the underwriter and the end customer. The objective of the insurtech company is to liberate people from the anxiety of financial shocks induced by unanticipated health risks.

Turaco accomplishes this via a B2B and B2B2C business model, establishing partnerships with top tech-enabled companies in emerging markets that have a large pool of customers or employees, including some of the continent’s most reputable companies such as Sun King, Tugende, One Acre Fund, M-KOPA, and VisionFund.

The insurtech has built and implemented a suite of bespoke medical, life, asset, and vehicle insurance packages that have already protected over 500,000 lives throughout Nigeria, Kenya, and Uganda through active collaborations.

In Africa, 90% of individuals have no formalised safety net to fall back on if they fall ill or are involved in an accident. Insurance is still in its early stages.

Inclusive insurance through Innovation

The majority of African insurance underwriters and brokers utilise restrictive systems that fail to allow for integration with external partners, and many continue to use paper-based processes.

Turaco is developing in a largely untapped industry, opening up a massive market and innovating for mass market consumers by offering a cutting-edge solution that will boost inclusive insurance.

Turaco has built an expanded distribution channel with its B2B2C strategy, allowing it to tap into a vast pool of potential clients in its markets, giving insurance to a population which has never purchased it before.

Turaco maintains a 1 billion user target

The startup, which now has a presence in Nigeria, and Uganda, has entered its expansion phase and is looking for new partnerships to push mass consumer insurance adoption in Africa.

The tech insurance platform has developed to become a dominant player at the forefront of new insurance solutions since its inception. Turaco products cost US$2 per month, with simple terms and conditions and a fully digital claims system that enables claimants to file through phone calls or WhatsApp, with payments made in less than three days using mobile money.

“In the next 25 years, we want to cover a billion people, and that’s what we’re working toward.” It’s a lofty aim in every aspect, and I’m not sure how to get there, but I have a clear vision of covering 100 million people.

To reach the next level of development, you must collaborate with some of the world’s most recognisable businesses.

We need the proper combination of talent, ambition, technology, and vision to get there. However, we have a long road ahead of us,” Ted Pantone, Turaco co-founder and CEO, told TechCrunch.

Pantone and Peter Gross co-founded Turaco after working together at MIC Global (Micro-Ensure), a provider of tech-enabled embedded insurance.
“I want to spend the rest of my life insuring a billion people, which is socially and commercially feasible,” he stated.

Kenyan insurtech firm Turaco secures US$10M Series A round fundraise. [Photo/Techeconomy.ng]
Turaco’s partners, such as PayGo firms (M-KOPA), trips platforms (SafeBoda), fintechs, and micro-finance institutions, can bundle insurance with their main products or services via API integration.

Each partner collaborates closely with the insurtech to “create and sell its insurance plans as a white-labelled service.” Customers can get life insurance, asset, medical, and auto insurance for as little as US$0.2.

“When we sell into these relationships, we often achieve north of a 50% conversion rate because the value proposition is compelling. And individuals are well aware of the hazards, such as having a medical emergency and paying hospital costs. The problem is not one of supply.

Customers are more likely to purchase insurance if it is built just for them from a price point value proposition and delivered seamlessly and efficiently. As a result, most of our innovation revolves around the distribution model.

That’s the primary thing we’re working on to make it easy for folks to say yes and then pay for insurance,” Pantone explained.

So far, the insurtech firm has over 500,000 clients, 268,000 of which are active. Its users have increased by 300% since 2020. Pantone attributes the company’s rise to its business model and value offer, which he claims benefits both partners and end customers.

According to AfricInvest and co-head of CAIF Partner Yassine Oussaifi,

“As the insurance penetration in Sub-Saharan Africa continues to be below. We believe Turaco has created the means and understanding exactly to fill this void and target low-income people with products tailored to their requirements, thus being a crucial element of the push to protect the most vulnerable from unforeseen financial obligations and shocks.”

Read: Insurtech boom deepening the uptake of insurance in Africa

Maingi Gichuku is passionate about helping African businesses grow by offering technology solutions. With a BSC in Zoology and biochemistry, Gichuku yearns for an Africa that can find solutions to its challenges. My drive is to see an economically dynamic Africa and embrace its populations by creating opportunities cutting across the social and economic strata.

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