South African life insurance startup AllLife has secured an undisclosed investment led by Accion Frontier Inclusion Fund it its first foray into the InsurTech space.
The fund is managed by Quona Capital. Existing backer LeapFrog Financial Inclusion Fund also participated.
The Johannesburg-based company aims to use data-driven algorithmic pricing and automated underwriting to extend insurance coverage to people with chronic diseases such as HIV and diabetes.
It’s estimated that 19.2% of the adult population in its home market live with HIV while 7% live with diabetes.
AllLife CEO Ross Beerman commented: “We are excited to bring on Quona and the Accion Frontier Inclusion Fund to support our continued focus on technology innovation and big data.
“Quona’s introduction to FinTech experts will help us on our journey to be at the leading edge in providing the best customer experience, while continually enhancing our model.
“With this investment, we are on a trajectory to continue to scale our efforts in providing coverage to a greater number of underserved clients who currently lack access to quality life insurance.”
AllLife has focused primarily on the South African market for the past five years but recently inked a partnership with UK-based mutual life, pensions and investment company Royal London to allow it to leverage AllLife’s tech.
Quona Capital’s founding partner Monica Brand Engel said: “AllLife’s innovative business model and data-driven approach push the boundaries of InsurTech by reaching those who were previously considered uninsurable.
“More broadly, AllLife has the potential to change the landscape of insurance coverage around the world as mainstream insurers like the UK’s Royal London bring the model to western markets.
“This reverse innovation, where a breakthrough business model developed in Africa is being imported into western markets, is a powerful statement of AllLife’s potential.”
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