Waada, a Karachi-based insuretech startup, has raised $1.3 million in seed funding from undisclosed investors. Additionally, it announced the acquisition of MicroEnsure Pakistan, a subsidiary of MicroGlobal, for an undisclosed amount.
Make me care: As of 2021, the insurance market size in Pakistan is $2.1 billion, growing at 5% CAGR. And insurance penetration in Pakistan is meager 0.7%, the lowest in the region.
Insurance is a safety net the middle and upper middle class can’t afford to live without. However, Pakistan’s insurance market is mainly manual and inefficient, which creates friction for consumers who want insurance but don’t want the hassle.
Insuretech is the solution to the problem. It simplifies the process of buying and selling insurance.
Tell me more: Waada is an SECP-licensed health, auto, and life insurance, provider.
Using technology, it simplifies product offerings, customer onboarding, and claims processes.
Automation reduces admin costs in the distribution chain, allowing Waada to offer higher commissions to agents and lower prices to customers.
Essentially, MicroEnsure Pakistan offered the same service as Waada.
Among Waada’s customers are Telenor and startups such as Abhi, whereas MicroEnsure Pakistan has clients such as Careem.
You should know: Waada was founded in 2020 by Ishaq Kothawala. Previously, he was CFO and Chief Strategy Officer at Bykea.
Zoom out: The insurance industry has relied on manually selling insurance for decades. Insuretech companies such as Waada and Smartchoice.pk are automating insurance processes by investing in technology.