Guardrisk to Invest R50m to Grow Insurtech in South Africa

Guardrisk to Invest R50m to Grow Insurtech in South Africa

Guardrisk, an affiliate of Momentum Metropolitan and an insurance provider, is looking to invest $2.7m (R50 million) in insurtech companies over the next 12 months via its Launchpad initiative. The Launchpad was introduced by Guardrisk yesterday in Sandton. The company said it was looking for venture capitalists and entrepreneurs to work with on its Insurtech initiative.

Entrepreneurs must offer solutions for issues like client interaction, underwriting, pricing, the claims process, and payments in order to be considered. Selected startups will receive specialized assistance, including money and non-financial assistance in the form of business and technical mentoring.

The insurance industry is undergoing a significant transformation, and South African businesses like Naked, Simply Financial Services, Pineapple and Ctrl are already setting the pace. Recall that on Wednesday, Naked Insurtech raised $17 million in a Series B financing that was led by the International Finance Corporation (IFC).

The total market value of Africa’s insurance industry, measured in terms of yearly gross written premiums, is close to $70 billion. About 70% of that comes from South Africa alone. The demand for user-friendly, digital services, including insurance, will only rise as more and younger, tech-savvy Africans enter the market. It should come as no surprise that large investors are swarming to support African start-ups as they irrevocably alter the insurance industry.

According to the business, Guardrisk will also assist in identifying the greatest and most efficient distribution channels to fit each venture’s expertise.

Xolani Nxanga, managing executive: micro insurance and Insurtech lead at Guardrisk, explains: “The digital economy and the business landscape of today is constantly changing, making it essential for organisations in a fast-paced and competitive sector like insurance to evolve to stay relevant.

“This means adapting to specific business and industry challenges and changing customer needs. Technology, and Insurtech solutions in particular, increasingly provide the ability to transform one’s business and address client challenges.”

By employing data science and artificial intelligence (AI) to deliver a better customer experience at an affordable price, Insurtech companies are fundamentally altering the sector. According to Guardrisk, it is seeking to make use of the ecosystem’s technological prowess to find opportunities for the creation of topical solutions that will benefit customers and profit from the market’s growth.

Nxanga continued that the startup was thrilled about the opportunity to partner with entrepreneurs and venture capital investors to build a robust Insurtech ecosystem that transcends industry borders and uses innovation to address genuine customer and business challenges in South Africa.

“Guardrisk is by nature an entrepreneurial business, so we understand the challenges and opportunities that entrepreneurs face in building and scaling their businesses – and are nimble enough to help them navigate these, grow and develop products and solutions that meet client needs, while simultaneously enabling convenience, flexibility and cost-effectiveness.”