MyCover.ai, an innovative Nigerian start-up, is making waves in the African insurance market. The company provides an open insurance API, allowing businesses to seamlessly integrate insurance into their existing products and services.
MyCover.ai recently announced a successful $1.25m pre-seed funding round, according to a report from TechCrunch. This venture was led by Pan-African venture capital fund, Ventures Platform, with significant contributions from Founders Factory Africa and follow-on investor Techstars.
At its core, MyCover.ai aims to remedy some of the major issues plaguing Africa’s insurance market. With the insurance penetration on the continent sitting at less than 3%, the company believes it can encourage more people to use insurance services by offering innovative products and better distribution channels. MyCover.ai’s open insurance API tackles the lack of transparency between insurance providers by allowing businesses to offer embedded insurance products and services to their customers.
The $1.25m funding will be primarily used to strengthen the company’s in-house operations and tech talent. Part of the investment will also go towards improving MyCover.ai’s proprietary technology. Furthermore, the company plans to expand its services into other African markets, thereby deepening its impact and reach.
One of MyCover.ai’s key strategies is to grow the size of the insurance market rather than just obtaining a large share. In the words of co-founder and CEO Adebowale Banjo, “We aren’t looking to gain significant share in the market only, we want to grow the size of the insurance pie by bringing more people into the fold through innovative products and better distribution.”
In addition to addressing accessibility and distribution issues, MyCover.ai has also prioritised product development, distribution and insurance claims. The company is working with several established insurance providers, including Hygeia, Leadway, Sovereign Trust, AIICO Insurance and Allianz. Furthermore, it has built relationships with a variety of businesses, from fintechs and proptechs to e-commerce companies and BNPL platforms, which can choose from over 30 personalised insurance products to embed into their platforms.
Prior to this round, MyCover.ai participated in the Techstars Toronto program last year, bolstering its reputation within the industry.
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