Nigerian artificial intelligence insurtech startup, Curacel, has announced a $450,000 pre-seed raise led by Atlantic Ventures and Consonance, with participation from Kepple Apple Ventures and other African angel investors.
Currently de-risking insurance companies and over 800 hospitals in Nigeria, Ghana, and Uganda, Curacel plans to expand into ten other African countries by the end of 2021. Founded in 2016, the startup has popular insurers like Old Mutual, AXA Mansard, and Liberty Health using its technology.
In 2016, Curacel got into the S Factory Pre-acceleration Programme, a spin-off of Start-Up Chile that gave it access to a $15,000 equity-free fund.
The SaaS startup provides insurance companies with solutions to automate their claims and limit risks ensuring that they can provide premium services to their clients and still be profitable.
Curacel’s AI-powered system works by figuring out whether a claim is true while detecting and flagging false and fraudulent claims. Apart from serving insurers directly, it creates a link between insurance companies and primary care hospitals, travel agencies, automobile companies, and security outfits.
Africa’s insurance penetration is low, below 3%, because of ignorance, the state of the economy, and illiteracy. African insurance companies are therefore faced with the task of simultaneously driving adoption and avoiding fraud.
Some agritech insurtech startups received funding earlier in the year. Once the hurdles are scaled, the African insurance market is a large one, arguably. And it appears investors have realised this.