Curacel, Africa’s leading insurance infrastructure provider, has raised 3 million dollars seed funding to roll out new technology solutions designed to power the next generation of insurance experiences in Africa.
A statement signed by Ms Ayanronke Olabode, Public Relations, Account Manager, Talking Drum Communications for Curacel said, the new funding will support the company’s expansion into North Africa.
The statement said the seed funding round included Tencent, AAF Management which was invested in Sure, Flutterwave, Elefund ,invested in Robinhood, Pie Insurance and Sure, Blue Point Capital Partners, Pioneer Fund, Olive Tree Capital and Y Combinator.
It listed also James Park, CEO of Fitbit, Olugbenga ‘GB’ Agboola, CEO of Flutterwave, Babs Ogundeyi, CEO of Kuda and other strategic investors.
According to the statement, top executives from Covergenius, Zopper and Pie Insurance will also join Curacel’s advisory board as part of the round.
” The combination of a fast growing population, a rising middle class and increasing access to financial services across the continent means more Africans have the opportunity to experience a wider range of products and services.
” From buying cars to accessing accommodation, these experiences come with various risks and insurance companies play a huge role in making it easier to manage the risks and enjoy these experiences with confidence.
“However, with insurance penetration across the continent still under three per cent, many Africans are having to take on these entirely by themselves,” it said.
According to the statement, the paper-based approach and antiquated technology that powers many insurers’ processes is time-consuming, unduly expensive and prone to fraud and waste.
It noted that African insurers lose more than $12 billion per year to fraudulent, wasteful and abusive claims, which makes them understandably cautious and risk-averse with the customer they choose to serve.
The statement explained that Curacel makes it easier for insurers to distribute their products, automate their claims processes and drive revenue growth.
It said this was done by giving insurers easy-to-use technology solutions that have been specifically designed to drive up insurance inclusion on the continent.
” With Grow, Curacel’s embedded insurance product, more than 100 banks, fintechs, logistics companies and other tech-enabled companies including ALAT (Nigeria’s first digital bank), Providus, PalmPay, Float, and others are empowered to increase their recurring revenues.
” This is done by offering digital insurance products that are seamlessly embedded into their existing products and services, driving much-needed insurance penetration and customer loyalty,” it said.
The statement added that leading insurers like AXA Mansard, Liberty Health, Old Mutual and Jubilee Heath also leverage Curacel’s market leading technology to improve the efficiency and accuracy of their claims processes.
It explained that the company’s Artificial Intelligence-powered infrastructure means claims can be submitted and processed in real time, helping insurers to reduce their claims cycle by more than 70 per cent and process up to 10 times more claims.
According to the statement, Curacel have processed more than $100 million worth of claims, working with more than 20 insurers and more than 5,000 service providers in eight countries across the continent.
” In 2022, Curacel grew its transaction volume by 600 per cent and increased its revenue by 500 per cent.
” Starting with Egypt and Morocco, the new funding will enable the company to roll out its services in North Africa and deepen its presence in other parts of the continent, ” it said.
Commenting, Mr Henry Mascot, CEO and Co-founder of Curacel said the firm was bullish on the potential of the right technology in the right places to close the protection gap across Africa and emerging markets.
” It is an exciting time for us as we secure the capital to deliver the vision and onboard the people who have built these technologies at scale in more mature markets.
“We are looking forward to delivering more technology solutions to drive up insurance inclusion,” Mascot said.
Managing Director and General Partner at AAF Management, Mr Omar Darwazah said, ‘at less than 3 per cent, insurance penetration rate in Africa is one of the lowest in the world ‘.
Darwazah said this presented an incredible market opportunity for the team at Curacel to bridge that insurance gap.
“We are excited to participate in the company’s seed round and join Curacel’s mission in building easy-to-use technology solutions for insurers to distribute their products on the continent,” he said.
Mr Serik Kaldykulov, General Partner at Elefund, said, Africa’s relatively untapped market when it comes to insurance and technology presents the best opportunity to reach new users and deliver excellent services.
‘ Curacel has built a suite of solutions and an impressive track record of success that makes us very excited to be supporting them on their mission to use technology to drive up insurance inclusion in Africa,” he said
Curacel is an insurance infrastructure company that helps insurers and partners in Africa and other emerging markets increase the reach and functionality of insurance.
