FSD Africa has unveiled the Inclusive Insurtech Investment Fund (3iF), a new pan-African venture capital fund valued at $25–30 million and designed to accelerate insurance innovation while closing the continent’s widening protection gap. The fund will support early-stage insurtech startups building solutions that expand access to affordable and relevant insurance products.
Despite Africa’s growing risk exposure, insurance penetration remains among the lowest in the world—hampered by limited distribution channels, low consumer trust, products that rarely meet the needs of informal workers and smallholder farmers, and tight household incomes.
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Launched at the BimaLab Africa Insurtech Summit in Nairobi, 3iF will target startups addressing key areas such as climate resilience, health protection, and financial inclusion; sectors where traditional insurers have struggled to innovate fast enough.
A push to expand access and affordability
3iF aims to strengthen insurance accessibility, affordability, and awareness by supporting technology-driven models capable of reaching underserved populations. The fund seeks to empower millions of Africans and small businesses that currently lack financial buffers against shocks.
The investment vehicle adopts a blended finance structure, combining junior equity from catalytic investors anchored by FSD Africa Investments with senior equity contributions from commercial and strategic investors led by Zep Re.
“A new chapter for insurance innovation”
Kelvin Massingham, FSD Africa’s Director for Adaptation and Resilience, said:
“The launch of the 3i Fund marks an exciting new chapter for insurance innovation in Africa. By investing in the next generation of insurtech pioneers, we aim to expand access, affordability, and resilience for millions across the continent. Our mission is to empower visionary startups to transform insurance for everyone—driving inclusive growth, climate resilience, and financial security for Africa’s future.”
Rising risks highlight urgent need for innovation
Insurance penetration remains below 3% in most African countries, leaving households and businesses extremely vulnerable. In 2022, an estimated 80% of economic losses from natural disasters were uninsured, up from 58% in 2021; a stark indicator of the continent’s growing protection gap and the critical need for innovation to boost resilience.
The 3iF is expected to play a pivotal role in addressing these challenges by backing insurtech startups capable of reshaping Africa’s insurance landscape.
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