SixThirty has made a multimillion-rand investment in Cape Town-based insurtech company Click2Sure, marking the first time an African start-up has caught the eye of the US-based tech venture fund.
Click2Sure was founded in 2016 by entrepreneurs Daniel Guasco (former CEO of Groupon SA) and Jacques van Niekerk (former CTO of Naspers).
The company is a digital insurance platform, which enables retailers, service providers, distributors and brokers to offer a selection of over 20 custom-developed insurance products, at the point-of-sale.
SixThirty invests in early-stage enterprise technology companies which are focused on building insurtech, fintech and cyber security solutions.
MD Guasco says the investment will enable the company to further develop its product and ensure businesses offering insurance take advantage of the benefits of digitisation, such as omni-channel distribution, reduction in administration costs, and better decision-making with real-time reporting and insight tools.
“Another reason we are thrilled to have SixThirty on board is the opportunity to participate in their Go-To-Market Summer programme, where we were introduced to key individuals, executives and other founders well-placed in the US market within blue chip companies, to help us get a foot in the door, and mentor us on what the US market and stakeholders expect to see from a start-up and technology partner,” notes Guasco.
Click2Sure says it is also eyeing expansion to Africa, Europe and America in the near future.
SixThirty says its investment in Click2Sure was motivated by recognition of the surprisingly low penetration of digital distribution in the insurance industry. Along with the forced digitalisation ushered in by COVID-19, SixThirty found Click2Sure’s exclusive focus as an enabler of digital distribution a key differentiator that can help it scale into new sectors and markets.
“Click2Sure doesn’t sell insurance. We provide our clients who sell insurance with a comprehensive cloud-based, digital platform for the distribution, management and purchasing of insurance at the point-of-sale,” explains Guasco.
Digitisation replaces the time-consuming manual process of filling in multiple-page policy documents. It also means insurers can get new products to market much faster and diversify their revenue streams, he adds.
Click2Sure’s customer-centric offering lets customers buy insurance through any digital channel, depending on their preferences. These could be Web/mobi channels, WhatsApp, SMS, e-commerce, and QR codes. This satisfies the modern customer’s need for accessibility, convenience and speed, as insurance companies can provide almost immediate coverage via a mobile app, for example.
SixThirty joins Greenlight Reinsurance, another US-based investor, among other investors, as capital partners in Click2Sure.
Guasco, who was previously founding director of online group buying Web site Twangoo, points out: “Digitisation has many benefits for consumers; being able to use digital channels increases accessibility for the under- and uninsured, enables customisation of insurance cover, and assists customers in getting the most affordable insurance cover.”
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