mTEK secures $1.25mn to boost East African insurance

East African InsurTech firm, mTEK Services, has secured a significant investment of $1.25 million from Verod-Kepple Africa Ventures and Founders Factory Africa to enhance their mission of providing innovative insurance solutions in the region. The funding aims to drive the company's growth and expansion initiatives, focusing on education, accessibility, and partnership activation in the insurance sector. Bente Krogmann, the CEO of mTEK Services, shared insights on the utilization of the investment and the emerging trends shaping the insurance industry across East Africa during an exclusive interview with CNBC Africa. The investment will be pivotal in addressing the educational gap surrounding insurance products, expanding insurance reach across Kenya and beyond, and fostering partnerships within the insurance ecosystem. Krogmann emphasized the importance of engaging insurance agents, brokers, banks, and underwriters to collaborate with mTEK Services to enhance the overall insurance experience for consumers. The CEO highlighted the transformative role of technology, particularly AI, in simplifying insurance processes and leveraging data to tailor products to meet consumer needs effectively. Additionally, Krogmann underscored the significance of micro-insurance and climate insurance in developing comprehensive and accessible insurance products to address low insurance penetration rates and climate-related risks. Embracing new regulations and implementing risk-based pricing models pose challenges for insurance companies in navigating the evolving landscape. Krogmann emphasized the importance of taking incremental steps towards optimization of core systems and distribution channels to enhance service delivery and consumer satisfaction. The investment from Verod-Kepple Africa Ventures and Founders Factory Africa marks a significant milestone for mTEK Services as they drive innovation and deepen insurance penetration in East Africa.