Kenyan Insurtech Startup Lami Technologies Secures $1.8-million

Kenyan insurtech startup Lami Technologies which is on a mission to break the 3% insurance penetration barrier in Africa through transforming and democratising insurance with their powerful platform solution has secured $1.8-million in a seed funding round led by Accion Venture Lab with participation from AAIC, Consonance, P1 Ventures, Acuity Ventures, The Continent Venture Partners, and Future Africa.

Africa’s insurance market stands at a 3% penetration rate, per a McKinsey study in 2018 comparing six insurance regions on the continent. If the South African market is excluded, this number drops to a measly 1.12%. Unlike other parts of the world, most African insurance providers neglect the importance of tailored and affordable insurance products to the average African consumer. Lami Technologies armed with $1.8 million in seed money, is looking to change that.

According to reports from the insurtech startup, the funding will be used to further improve Lami Technologies’ digital insurance platform which aims to support low-income populations. In addition, the funding will be used to expand the tech startups’ footprint in Africa. 

Jihan Abass, CEO of Lami Technologies comments on the most recent funding secured. 

“This funding will allow us to invest in hiring more people, improving our technology, and growing our presence across Africa as we can continue to address the persistent insurance gap. At Lami, our vision is to help improve the financial resilience of millions by making insurance products more accessible and affordable for underserved populations. By enabling our business partners to offer customized insurance solutions, we are helping them provide more value to their customers, while enabling large volumes of users to access insurance, often for the first time.”

Lami Technologies

Founded in 2018, Lami Technologies is an insurtech startup that aims to democratise insurance products and services for low-income Kenyans. Established and founded by Jihan Abass, the innovative insurtech startup enables partner businesses such as banks, tech companies, and other businesses to easily offer digital insurance products to their users via its API. 

The API enables users to access quotations for motor, medical, and a range of other tailored insurance products. Leveraging cloud computing, automation, and third-party service providers such as emergency and valuation, or identity and asset verification databases, Lami Technologies is able to offer a comprehensive ecosystem for businesses they partner with to develop, distribute and manage insurance products catering to a customer’s needs and wants.

Users are able to customise the benefits and premium of the insurance plan to suit their needs and budget. The insurtech startup claims to payout claims in record time and distributes policy documents instantly. Lami Technologies claims that since its inception it has sold over 5 000 policies and has partnered with over 25 active underwriters such as Britam, Pioneer, and Madison Insurance.

Michael Schlein, President, and CEO, Accion Venture Lab attributes their investment into the insuretech startup due to its much-needed and affordable offering. 

“Ninety-seven percent of Africans lack access to insurance – a financial safety net that can help them build resilience against economic shocks. Lami helps address this need for consumers across Africa through its innovative approach that leverages technology and partnerships to help any business develop and sell insurance.”