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Agusto & Co. reported that the Nigerian Insurance Industry’s gross premium income (GPI) grew by 15% year-on-year to ₦592.3 billion in the financial year that ended on 31 December 2020. According to Nairametrics, the bulk of the growth in Africa comes from pensions and individual life insurance which is the fastest growing line of business on the continent while car insurance is the largest contributor to nonlife insurance driven by conditions for a compulsory minimum level of insurance in countries like Nigeria, Morocco, Kenya, and Egypt. Despite the gradual adoption of insurance, insurance companies still face a lot of challenges. Many people believe that insurance is something they can’t afford or a luxury that is way out of their league. Also, the lack of trust in the insurance system and poor product fit is challenging the insurance industry. lack of education and awareness on insurance benefits also plays a role in the low penetration of insurance in Nigeria. Many innovators have come up with solutions to fast-track the rate of adoption of insurance in Nigeria with insurance technology at the forefront. With the low insurance penetration and Nigeria’s large population, Insurtech startups are utilizing technology to take advantage of the spaces that exist in the Nigerian insurance market. At the forefront of this movement is Octamile. This startup is enabling Insurance and non-insurance businesses to simplify access to insurance and protect Africans especially Nigerians from financial loss. Octamile is focused on every sector of the Insurance industry, with a special interest in auto insurance. Auto Insurance is a vast market and as such the current focus of octamile when launched. Octamile was founded by a Nigerian named Gbenro Dara and has been in stealth mode since its inception. Recently Octamile has secured 500 thousand dollars preseed fund for its launch. The funding was led by EchoVC while Fiat Ventures, Kesho VC, Trade X, Verraki Partners, Dale Mathias, Kyle Daley also participated to raise funds for octamile as well as other local and international investors. The company has plans to work closely with its partners, which include AXAMansard and FirstBank, and are ready to welcome dozens of insurers and startups on the waitlist ready to leverage the power of its solutions.
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Insurance is one of the sectors that can improve the economy, but only about 5 out of 100 Africans have any form of insurance protection. The industry has refused to evolve and has continued to totter in adopting technology to deliver better products and services. Octamile believes in simplifying access to and curtailing tension in the insurance experience to protect Nigerians and Africa at large from financial loss. Using Octamile’s customizable digital API’s, non-insurance businesses and developers can add insurance as a feature in their products or services. For Insurance providers, Octamile aims to propel them with the data and technology to enhance their customer experience, reduce administrative costs and optimize the profitability of their insurance portfolio. The startup offers an end-to-end claims management solution that can be integrated into the existing systems and processes of insurance providers. This enables organizations to provide a smooth claims experience while reducing administrative costs. Octamile stands out from other start-ups because its features can be used by both insurance and non-insurance organizations. To provide transparent and speedy services, octamile’s fast-track claims solutions improve the overall claims experience for partners, reducing it from as much as 30 days to instant payout. Insurance is a necessity. Life is full of risks and uncertainties but insurance comes with peace of mind knowing you have invested in an unforeseen event. Implementing certain technologies such as Octamile are said to be the major driver of insurance penetration in Nigeria. These are needed to attract more people to the sector, as only less than 1% of the nation’s population are customers in the sector. More startups should rise to educate Nigerians on the need for insurance, this will raise the economy of the nation and give Nigerians a softer ground to fall on when met with calamities. Featured Image Source: @octamile – Twitter
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