German
start-up financier GreenTec Capital has announced its investment into Kenyan
blochchain based Bismart Insurance company. By
using emerging technologies to address the issues of financing and
transparency, Bismart aims to gain a strong foothold in the African market. The
company will start with a small range of service and products that will be
expanded quickly.
The
interface being developed by the Bismart team will allow the distribution of
insurance products across all of Africa, facilitating the rapid roll-out and
scaling of the business.
The
company’s founder, Eunice Maina, is a Kenyan woman entrepreneur who has
dedicated 15 years’ of her life to protecting customers through insurance. She
has now decided to embrace the challenge of Entrepreneurship and use technology
to develop a platform that embraces a more personal and trust-building user
experience that has been the core of her business.
This
platform will also help Bismart to increase efficiency and transparency through
the implementation of Blockchain technology “Smart-Contracts” in order to
facilitate policy management and benefit from the security of decentralized
databases.
Insurance
adoption in Sub-Saharan Africa is in the low single digits with South Africa as
an exception with a rate above 10%. This is due in part to the inability of
insurance companies to rely on the traditional payment channels provided by
banks for premium collection and claim pay-outs. Additionally, the African
market is primarily composed of consumers with unsteady cash flows and low
incomes that are wary of paying for services without perceived tangible
benefits.
And
finally, insurance acceptance is further limited by low financial literacy at
the BOP that leads to inefficiencies in customer acquisition, policy
management, and claims resolution. Bismart solves these problems through its
platform.
GreenTec’s
CEO Erick Yong said “One of the biggest challenges for innovative startups in
Africa is the implementation of solutions with distribution channels that have
Pan-African reach. Bismart’s application of emerging technologies solves this
problem brilliantly, while disrupting the insurance value chain from customer
acquisition to risk management.”
In
addition to GreenTec’s investment, Bismart has already benefited from the
commitment of an initial investor to develop its platform and expects to be
able to launch its service offerings by the start of Q4 2018.
Leveraging
on cutting edge technology, the company provides a digital interface to offer
insurance products and services across Africa. Bismart’s vision is to enable
every African to access insurance without the burden of immediate out-of-pocket
payments, in a transparent, convenient, and friendly manner.
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