Nigeria’s MyCover.ai, an insurtech startup, has announced that it has secured $1.25 million in pre-seed funding. The round was led by Pan-African venture capital fund Ventures Platform, with participation from investors Founders Factory Africa and Techstars.
The funding will be used to strengthen the company’s internal operations and technical talent while investing heavily in its proprietary technology. Additionally, MyCover.ai plans to expand its operations into other African markets strategically.
MyCover.ai offers an open insurance API that enables businesses to seamlessly integrate insurance into their existing products and services. The startup aims to address key challenges in Africa’s insurance market, including lack of access, inadequate coverage, unaffordability of insurance products, and poor customer experience.
Unlike traditional insurers that operate in silos, MyCover.ai streamlines the claims process by collaborating with insurance companies such as Hygeia, Leadway, Sovereign Trust, AIICO Insurance, and Allianz. This allows businesses in various sectors, including fintech, e-commerce, logistics, and mobility, to choose from over 30 personalized insurance products to embed into their platforms.
One of MyCover.ai’s main goals is to make insurance more mainstream and improve access to great products. By leveraging artificial intelligence (AI), the startup aims to enhance the claims management process and provide a better customer experience.
According to the National Insurance Commission, only 0.5% of Nigeria’s population is currently covered by insurance. This low penetration rate leaves many individuals without adequate coverage, forcing them to rely on personal funds during emergencies. In addition to its API products, MyCover.ai has introduced a B2B platform called MyCoverGenius. This platform allows entrepreneurs and small businesses to purchase insurance products for their staff and assets, starting at just $2 monthly.
Since its launch, MyCover.ai has recorded over $1 million in gross written premiums through partnerships with 30 insurance providers across Nigeria. The startup has processed more than 50,000 policies and served over 30,000 end users. With discussions underway with approximately 50 other providers, MyCover.ai aims to replicate its revenue growth from last year and expand its market presence further.
Dotun Olowoporoku, General Partner at Ventures Platform, praised MyCover.ai’s approach, stating that the company is reshaping the insurance landscape in Nigeria by building the necessary infrastructure. Unlike other insurtech solutions focusing on specific areas of insurance penetration, MyCover.ai offers a comprehensive suite of services to address various challenges in the sector.
With the promising growth of Africa’s insurance market, fueled by a young population, increasing smartphone usage, and the availability of affordable internet access, startups like MyCover.ai are playing a crucial role in deepening insurance penetration on the continent. As MyCover.ai continues to scale its operations and expands into other African markets, the startup aims to have a significant share in a market with less than 1% insurance penetration.
