FSD Africa (FSDA) today announced the launch of a new $25 – 30 million Inclusive Insurtech Investment Fund (3iF) at the BimaLab Africa Insurtech Summit. The fund is designed to catalyze private investment in the insurance technology (insurtech) sector, accelerate innovation, and close the continent’s substantial insurance protection gap.
Africa faces a profound challenge, with insurance penetration remaining below 3% in most countries. This vulnerability is starkly visible in disaster recovery: approximately 80% of economic losses from natural disasters went uninsured in 2022, a notable increase from 58% in 2021. The 3iF aims to tackle this by backing early-stage insurtech startups focused on expanding insurance access, affordability, and awareness, particularly in vital areas like climate resilience, health, and financial inclusion for underserved populations.
The 3iF, expected to launch in January 2026, is a pan-African venture capital fund structured to provide much-needed growth capital. It will build on the success of the BimaLab Accelerator Programme, which has already supported over 135 startups across 28 African countries.
The Fund features a blended structure, combining junior equity from catalytic investors, anchored by FSDAi (FSD Africa’s investment arm), with senior equity from commercial and strategic investors led by Zep Re.
Kelvin Massingham, Director of Adaptation and Resilience at FSD Africa, commented on the launch: “The launch of the 3i Fund opens an exciting new chapter for insurance innovation in Africa. By investing in the next generation of insurtech pioneers, we are unlocking opportunities to expand access, affordability, and resilience for millions across the continent. Our goal is to empower visionary startups to transform how insurance works for everyone.”
Alongside the investment fund, FSD Africa also launched a Regulatory Sandbox Eligibility Assessment Toolkit at the BimaLab Summit.
This practical resource is designed to empower African insurance regulators to better evaluate and quantify the economic impact of emerging insurtech models. By streamlining the assessment process, the toolkit aims to:
- Lower barriers for promising startups.
- Support further investment and testing within regulatory sandboxes.
- Expand access to affordable risk protection for vulnerable groups, including informal workers, rural communities, and smallholder farmers.
The BimaLab Africa Insurtech Summit 2025 convened key stakeholders—insurers, regulators, investors, and innovators under the theme “Insuring Africa’s Future: Innovation, Inclusion and Investment.”