YC-backed Curacel secures $3M seed to expand its insurance offering into North Africa
Nigeria-based insurtech, Curacel has secured a $3 million seed funding to expand its drive insurance experiences across Africa
The combination of a fast-growing population, a rising middle class and increasing access to financial services across the continent mean 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 3%, many Africans are having to take on these entirely by themselves.
At the same time, the paper-based approach and antiquated technology that powers many insurers' processes are time-consuming, unduly expensive and prone to fraud and waste. 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.
In Africa, several insurtech companies are building infrastructures to solve these issues, one of them, Nigeria-based Curacel has raised $3 million in seed funding to roll out new technology solutions designed to power the next generation of insurance experiences in Africa. Recall that, the company raised a $450,000 pre-seed in 2021, bringing its total disclosed funding to $3.450 million.
The new funding will also support the company's expansion into North Africa, starting with Egyot and Morocco, according to a statement shared with Benjamindada.com.
"We are 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, and we are looking forward to delivering more technology solutions to drive up insurance inclusion," Henry Mascot, CEO and co-founder of Curacel, said in the statement.
Top executives from Covergenius, Zopper and Pie Insurance will also join Curacel’s advisory board as part of the round.
"Africa remains a 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," Serik Kaldykulov, General Partner at Elefund, added.
Curacel makes it easier for insurers to distribute their products, automate their claims processes, and drive revenue growth by giving them 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, etc and others are empowered to increase their recurring revenues by offering digital insurance products that are seamlessly embedded into their existing products and services, driving much-needed insurance penetration and customer loyalty.
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. The company’s AI-powered infrastructure means claims can be submitted and processed in real-time, helping insurers to reduce their claims cycle by more than 70% and process up to 10x more claims.
Since its launch in 2019, Curacel has processed more than $100 million worth of claims, working with more than 20 insurers and more than 5,000 service providers in 8 countries across the continent. In 2022, Curacel grew its transaction volume by 600% and increased its revenue by 500%.
"At less than 3%, the insurance penetration rate in Africa is one of the lowest in the world, presenting an incredible market opportunity for Henry and the team at Curacel to bridge that insurance gap," Omar Darwazah, Managing Director and General Partner at AAF Management said. "We are excited to participate in the company’s Seed round and join Curacel’s mission of building easy-to-use technology solutions for insurers to distribute their products on the continent."