GreenTec Capital has announced its investment into Kenya insurtech startup Bismart Insurance. Leveraging on cutting-edge technology, the company provides a digital interface to offer insurance products and services across Africa.

Bismart’s vision is to enable every African to access insurance without the burden of immediate out-of-pocket payments, in a transparent, convenient, and friendly manner. By using emerging technologies to address the issues of financing and transparency, Bismart aims to gain a strong foothold in the African market.

The company will start with a small range of service and products that will be expanded quickly. The interface is developed by the Bismart team will allow the distribution of insurance products across all of Africa, facilitating the rapid roll-out and scaling of the business.

Insurance adoption in Sub-Saharan Africa is in the low single digits with South Africa as an exception with a rate above 10%. This is due in part to the inability of insurance companies to rely on the traditional payment channels provided by banks for premium collection and claim payouts. Additionally, the African market is primarily composed of consumers with unsteady cash flows and low incomes that are wary of paying for services without perceived tangible benefits. And finally, insurance acceptance is further limited by low financial literacy.

GreenTech’s CEO Erick Yong said “One of the biggest challenges for innovative startups in Africa is the implementation of solutions with distribution channels that have Pan-African reach. Bismart’s application of emerging technologies solves this problem brilliantly while disrupting the insurance value chain from customer acquisition to risk management.”

GreenTec Capital Partners invests in African start-ups and SMEs with a focus on combining social and environmental impact with financial success.