FSD Africa has announced the creation of the Inclusive Insurtech Investment Fund (3iF), a pan-African venture capital initiative worth $25–30 million. The fund aims to accelerate insurance innovation and close the continent’s significant protection gap by supporting early-stage insurtech startups.
Insurance penetration in Africa remains among the lowest globally, driven by well-documented challenges: underdeveloped distribution networks, low consumer trust, a lack of products tailored to informal workers and smallholder farmers, and limited household disposable income.
The Inclusive Insurtech Investment Fund (3iF), launched at the BimaLab Africa Insurtech Summit in Nairobi, will focus on startups developing solutions for climate resilience, health, and financial inclusion—critical areas where traditional insurers have lagged in innovation despite escalating risk exposure.
3iF will focus on startups that enhance insurance accessibility, affordability, and awareness across Africa. By leveraging technology-driven solutions, the fund seeks to empower millions of individuals and small businesses who remain vulnerable to financial shocks.
The fund adopts a blended finance model, combining junior equity from catalytic investors—anchored by FSD Africa Investments, the organization’s investment arm—with senior equity from commercial and strategic investors led by Zep Re.
Kelvin Massingham, Director for Adaptation and Resilience at FSD Africa, stated:
The launch of the 3i Fund marks an exciting new chapter for insurance innovation in Africa. By investing in the next generation of insurtech pioneers, we aim to expand access, affordability, and resilience for millions across the continent. Our mission is to empower visionary startups to transform insurance for everyone—driving inclusive growth, climate resilience, and financial security for Africa’s future.
Insurance penetration in Africa remains below 3% in most countries, leaving individuals and businesses highly exposed to risks. In 2022, approximately 80% of economic losses from natural disasters were uninsured, a sharp increase from 58% in 2021. This underscores the urgent need for innovative solutions to strengthen financial resilience.
