FSD Africa has announced a new $25–30 million Inclusive Insurtech Investment Fund (3iF), unveiled during the BimaLab Africa Insurtech Summit held on 26–27 November in Nairobi.
The pan-African venture capital fund will target early-stage insurtech startups advancing insurance access, affordability and innovation especially in climate resilience, health, and financial inclusion for underserved populations.
The Fund builds on the BimaLab Accelerator Programme, which has already supported over 135 startups across 28 countries, and aims to close critical financing gaps that prevent promising solutions from scaling.
Expected to launch in January 2026, 3iF will operate under a blended structure that combines junior equity from catalytic investors led by FSD Africa Investments (FSDAi) with senior equity from commercial and strategic investors led by Zep Re.
The Fund will provide growth capital to both BimaLab graduates and other promising ventures across Africa.
Speaking at the Summit, Kelvin Massingham, Director, Adaptation and Resilience at FSD Africa, said:
“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 driving inclusive growth, climate resilience, and financial security for Africa’s future.”
New Toolkit to Support Regulatory Innovation
Alongside the fund, stakeholders also unveiled a Regulatory Sandbox Eligibility Assessment Toolkit, designed to help insurance regulators across the continent evaluate new insurtech innovations using measurable impact criteria.
The toolkit aims to streamline regulatory processes, reduce startup barriers, and support the testing of innovative insurtech models particularly those serving informal workers, rural communities, smallholder farmers and low-income households.
Godfrey Kiptum, MBS, CEO and Commissioner of the Insurance Regulatory Authority (IRA) Kenya, welcomed the toolkit, stating:
“By strengthening the regulatory environment, we are laying the foundation for a more resilient and inclusive insurance ecosystem for Africa’s next decade. Building regulatory readiness for innovation is key, and BimaLab’s new toolkit will be an invaluable resource not only for us here in Kenya, but for African regulators across the continent.”
Closing Africa’s Insurance Protection Gap
Africa’s insurance penetration remains below 3 percent in most markets, leaving millions vulnerable to shocks.
In 2022, around 80 percent of economic losses from natural disasters went uninsured, highlighting a widening protection gap.
Launched in Kenya in 2020 by the IRA and FSD Africa, BimaLab has grown into the continent’s leading insurance innovation platform, driving inclusive product development and supporting regulatory engagement aimed at boosting insurance penetration among underserved communities.
Elias Omondi, Principal of Innovation for Resilience at FSD Africa, emphasized the need for capital and capacity.
“Africa’s protection gap is not just a market failure, it’s a capacity and capital gap. BimaLab Africa Insurtech Accelerator combines focused technical support with catalytic funding, we enable insurtechs to de-risk innovation, scale inclusive products and reach the millions who remain unprotected.” Omondi noted.
