Nigeria’s MyCover.ai to expand its open insurance API platform with fresh funding

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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.

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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.

Frequently Asked Questions (FAQs) Related to the Above News

What is MyCover.ai?

MyCover.ai is an insurtech startup based in Nigeria that offers an open insurance API platform.

What is the funding announcement from MyCover.ai?

MyCover.ai has secured $1.25 million in pre-seed funding led by Ventures Platform, with participation from Founders Factory Africa and Techstars.

How will MyCover.ai use the funding?

The funding will be used to strengthen the company's internal operations and technical talent, invest in its proprietary technology, and expand into other African markets.

What challenges does MyCover.ai aim to address in Africa's insurance market?

MyCover.ai aims to address challenges such as lack of access, inadequate coverage, unaffordability of insurance products, and poor customer experience.

How does MyCover.ai collaborate with insurance companies?

MyCover.ai collaborates with insurance companies such as Hygeia, Leadway, Sovereign Trust, AIICO Insurance, and Allianz to streamline the claims process and offer personalized insurance products.

What is MyCoverGenius?

MyCoverGenius is a B2B platform introduced by MyCover.ai that allows entrepreneurs and small businesses to purchase insurance products for their staff and assets.

What is the main goal of MyCover.ai?

MyCover.ai aims to make insurance more mainstream, improve access to great products, and provide a better customer experience through the use of artificial intelligence.

What are the achievements of MyCover.ai so far?

MyCover.ai has recorded over $1 million in gross written premiums, processed more than 50,000 policies, and served over 30,000 end users through partnerships with 30 insurance providers in Nigeria.

What is the potential of the African insurance market?

The African insurance market has promising growth potential due to factors such as a young population, increasing smartphone usage, and affordable internet access.

What is MyCover.ai's market share goal?

MyCover.ai aims to have a significant share in a market with less than 1% insurance penetration in Africa as it continues to scale its operations and expand into other African markets.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

Advait Gupta
Advait Gupta
Advait is our expert writer and manager for the Artificial Intelligence category. His passion for AI research and its advancements drives him to deliver in-depth articles that explore the frontiers of this rapidly evolving field. Advait's articles delve into the latest breakthroughs, trends, and ethical considerations, keeping readers at the forefront of AI knowledge.

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