A Nigerian insurtech startup, which recently raised a substantial pre-seed funding, has obtained an operational license in Ghana from the country’s National Insurance Commission (NIC).
The startup is entering the Ghanaian market through a strategic partnership with a prominent insurance company called Hollard Insurance Ghana. This collaboration allows the insurance company to handle underwriting while the startup manages the tech platform and operational aspects.
The CEO of the startup emphasized the partnership with Hollard Insurance due to their extensive market knowledge.
Established in 2022, the startup boasts of offering users the ability to purchase car insurance within 90 seconds and file claims in just three minutes. Among its features are quick claim processing, customizable coverage options, and a rewards program that promotes safe driving habits. Additionally, the platform allows drivers to choose insurance payment plans ranging from per trip to yearly coverage.
Although the startup is currently operational in 12 Nigerian states, it anticipates a significant revenue boost from the Ghanaian market. The startup reports processing nearly ₦20 billion in total sum assured through its various insurance policies.
While Nigeria presents a larger market size, the CEO believes that Ghana offers more business opportunities due to its higher insurance penetration rate. Statistics show that one in three vehicles in Ghana is insured compared to only one in five vehicles in Nigeria.
The CEO pointed out that Ghana provides a less risky and chaotic business environment compared to Nigeria.
The startup will face competition from other players in Ghana’s Motor Vehicle Insurance market, which is projected to grow substantially in the coming years. The startup also plans to expand its operations to Cote d’Ivoire to tap into the Francophone region.