Lami Technologies, a Kenyan insurtech, is acquiring Bluewave Insurance Agency, a direct competitor in the insurance-focused technology industry.
The sum planned for this purchase is kept under wraps. Lami will take over Bluewave’s staff and business partnerships, which was launched in 2018 by Kenyan entrepreneur Jihan Abass.
“This acquisition will bring exponential growth to both companies, with increased resources, improved technology and innovation, expertise and market expansion. This acquisition will help us create a more competitive environment for insurtech in Africa, as we continue to work on providing affordable and convenient insurance products for all Africans,” commented Roy Perlot, Chief Financial Officer at Lami Technologies .
Lami Technologies raised $1.8 million in seed capital nine months ago, and this announcement comes nine months later. In May 2021, the firm that aspires to democratize insurance goods and services for low-income Kenyans announced that it will expand its workforce and upgrade its technology.
With an estimated growth of 65,000 existing policies and a possible growth of hundreds of thousands of policies in 2022, Lami will be able to expand its position in Africa by entering new areas where Bluewave is already present. Lami will now cover Kenya, Malawi, Tanzania, Uganda, Rwanda, Nigeria, Gambia, and the Democratic Republic of the Congo.
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The transaction will also broaden Lami’s customer/product sector in Malawi, where Bluewave provides insurance to over 60,000 smallholder farmers. Lami claims to have sold over 5,000 policies and collaborated with more than 25 active underwriters, including Britam, Pioneer, and Madison Insurance, between its founding in 2018 and May 2021.
With the exception of South Africa, Roy Perlot predicts that the African insurance market, which has a penetration rate of 3%, is confronting modernization and development issues in a note issued in May 2021. Traditional policy administration, a lack of awareness of insurance products, and inflexible offers were cited by insurtech as reasons for the continent’s poor insurance take-up and adoption rate.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer