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Nigerian insurtech startup, MyCover.ai, has successfully concluded a pre-seed funding round, raising $1.25 million to address the challenges faced by the insurance industry in African markets.
The funding will be utilized to expand the reach of MyCover.ai’s product into other African markets. Founders Factory Africa and TechStars were among the participants in the funding round, with TechStars making a follow-on investment.
Founded in 2021 by Adebowale Banjo, Alexander Igwe-Ifendu, and Fred Ebho, MyCover.ai aims to tackle various pain points in the insurance market, including limited access, inadequate coverage, unaffordable insurance products, and poor customer experiences during insurance processes. The insurtech startup provides an open insurance API that integrates with insurance companies like Hygeia, Leadway, Sovereign Trust, AIICO Insurance, and Allianz, offering over 30 personalized insurance products. This allows other businesses and innovators to easily embed these insurance products into their platforms.
The primary goal of MyCover.ai is to provide financial security to Africans, especially Nigerians facing various vulnerabilities, including health challenges, asset loss, and potential loss of livelihood. As per Augusta & Co, only 0.5 percent of Nigeria’s population currently has insurance, which can be attributed to the country’s significant poverty rates, with around 133 million out of its 200 million population living in multidimensional poverty, and a minimum wage of ₦30,000 ($37.69).
MyCover.ai’s powerful API integration empowers businesses from diverse sectors to seamlessly incorporate insurance into their products and services, with the option of white-labeling without incurring additional risks or costs. These businesses now have the opportunity to offer insurance policies as add-ons to their existing core products, enhancing their offerings to customers.
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