Fortyfi

In Nigeria, over 130 million people (>60% of the country’s population) are living in multidimensional poverty, a sharp increase from over 80 million recorded in 2019. In other words, an additional 50 million Nigerians have fallen into poverty since the start of the pandemic. Research from Peking University in Beijing shows that insurance solutions are powerful tools that help in managing the risk of falling into poverty. Unfortunately, Nigeria has one of the lowest insurance penetration rates in Africa (0.5%). Over 95 million Nigerian adults and 65% of small/medium-scale businesses in the country are without any form of insurance.

Inaccessible insurance services, cumbersome end-to-end process of insurance uptake, non-availability of flexible payment options, and fragmented service delivery, make up the problems middle/low-income earners and small/medium-scale enterprises encounter with regards to insurance uptake.

Fortyfi is a fully digital insurance marketplace that allows users to buy insurance, manage premium payments, make claims, and track claims progress. The Fortyfi platform uses Artificial Intelligence (AI) to provide access to a wide range of compatible insurance products that are simple and affordable.

We are democratizing access to insurance services, by providing individuals and businesses with easy access to personalized insurance services that are fast, reliable, and easy to use.

The Fortyfi solution has three major functionalities:

Marketplace

A mobile and web based online marketplace that provides easy and transparent access to several insurance products and value-added services.

Automated Claims Management

Our automated claims management feature allows users to track and monitor their claims application which aids transparency.

Policy Renewal and Management

Allows users to schedule renewal of their purchased insurance policies. It also offers flexible periodic payment options. 

By completely digitizing insurance processes, and providing access to micro-insurance products, we are taking insurance to every Nigerian, especially the traditionally underserved communities.

We have categorized our customers into four segments: Salary Earners, SMEs/Corporations, Artisans/Traders, and Rural Dwellers.

Salary Earners:

Tobi works as a technician in a manufacturing company in Lagos, Nigeria. He has just bought a car to make commuting easier for him. However, he cannot afford the lump sum required to purchase a comprehensive insurance cover for his car. Most insurance providers do not offer flexible payment options that allow customers to pay as they earn. The lack of transparency in insurance policy coverage and exclusions is also a major concern.

We have onboarded on our platform innovative insurance providers offering flexible premium payment options that allow customers to pay as they earn for insurance services. The Fortyfi app also offers users transparent insurance policies by giving full disclosure of policy terms and breaking them down to their most basic form for easy comprehension.

SMEs/Corporations

Wheelz Ventures is a fleet and general asset leasing company that provides vehicle and other asset leasing services to companies and individuals. Their major issue is the unavailability of a single platform that allows them purchase insurance policies, manage premium payments, and make claims, especially in record time. The existing insurance service delivery model is highly fragmented and requires multiple interactions by end users to maximize value.

Our digital platform ensures customers can access and manage the entire end-to-end process of insurance uptake for both unit and fleet properties with ease on a single platform. Customers can also take on several value- added services that allow them to maximize the value of their insurance.

Artisans/Traders

Mr. Muhammad is a farmer in Plateau state, Northern Nigeria. He cultivates and sells staple foods and experiences frequent losses due to bad weather. However, he neither knows that there is insurance coverage for his needs nor how to access such coverage. Most insurance providers do not have a robust distribution channel that cuts across the different customer segments, especially those in rural communities like Mr. Muhammad.

Our digital platform combined with our robust agency distribution model caters to customer segments across various demographics, especially the traditionally underserved.

Rural Dwellers

Hauwa is a widowed mother of two, living in a rural community in Kano. She lost her husband to a brief illness owing to their inability to afford proper healthcare. She is unaware of affordable health insurance services. Most insurance providers do not prioritize the distribution of micro-insurance services owing to the perceived high cost of distribution against the potential gains. There is also a general lack of knowledge of the concept of insurance and risk management, and how it can provide a cushion to mitigate against unforeseen events.

Our agency distribution model allows us to distribute affordable insurance (microinsurance services) to customers within this customer segment, at considerably lower distribution costs. We are also constantly executing initiatives to increase the awareness and depth of insurance and risk management strategies among the public.

Our founders are grounded in both theoretical and practical knowledge of the insurance business. The team has a combined fifteen (15) years relevant industry experience with expertise across general & life insurance, reinsurance, banking, finance (audit, private equity, investment banking and venture capital), machine learning, artificial intelligence (AI) and software engineering. The founding team is fully based in and operates from Lagos, Nigeria.

We have a strategic partnership with the Entrepreneurship Centre of the University of Lagos, Nigeria, that gives us access to a pool of our different customer segments for a pilot launch. This partnership has the potential to open doors for more viable collaborations that will enable us to quickly scale and deliver sustainable solutions to the country's insurance problems.

To understand the specific needs of our different customer segments, we have conducted targeted surveys and customer interviews that has helped us improve some features and functionalities of our minimum viable product from what it was at the prototype stage. In the coming months (Q4 2023), we will be conducting field research on the application of insurance in the day-to-day activities of rural community dwellers. The goal is to have a broader understanding of; the perception of insurance services by this customer segment; the insurance types that caters to them best; and the most efficient distribution channel that would drive mass adoption within this customer segment. We will be doing this ahead of our planned product development and launch of rural access tools specifically aimed at capturing this market segment.

We have provided access to insurance coverage for fifteen (15) users in our first month of operations. We have also recorded over two hundred (200) user signups on our platform.

As an organization committed to driving insurance penetration in Africa, we are excited to apply to the MIT Solve Challenge. From our research, we have come to know that the Solve Challenge is a platform that fosters collaboration, innovation, and entrepreneurship to address some of the world's most pressing problems. There are several compelling reasons why we are eager to participate in this unique opportunity.

Firstly, the MIT Solve Challenge presents us with a great opportunity to collaborate and network with like-minded individuals and organizations from diverse backgrounds. The platform provides a collaborative environment that fosters creativity, encourages cross-sectoral partnerships, and allows for the exchange of ideas and expertise. To this end, we are convinced that by participating in the Solve Challenge, we will get the chance to collaborate with a diverse global community, which can help us refine and strengthen our solution to make more meaningful impact.

Furthermore, the Solve Challenge offers a powerful avenue to scale our solution and amplify its impact. The challenge provides access to a network of partners, including corporations, investors, and policymakers. These partnerships can facilitate the dissemination of our solution to a wider audience, accelerate its implementation, and attract the necessary funding and expertise required to scale our efforts. Additionally, the exposure and recognition that comes with being a Solve Challenge participant can help us raise awareness about our cause and attract further support from stakeholders who are aligned with our mission.

The Solve Challenge focuses on solving critical global issues such as health, financial inclusion, and economic prosperity, which are directly related to our organization's core areas of expertise and aligns with our mission. By participating in the challenge, we can leverage our strengths and knowledge to develop innovative solutions that can drive positive change in these areas. The challenge also emphasizes solutions that are scalable, sustainable, and equitable, which align with our commitment to creating long-term, impactful solutions that benefit all, particularly the traditionally underserved communities.

Lastly, the MIT Solve Challenge offers a rigorous and competitive selection process, which motivates us to strive for excellence. The challenge attracts top talent from around the world, and being selected as a Solver is a testament to the quality and potential of our solution. Such a recognition will boost the team’s morale and provide validation for our approach to problem-solving. The rigorous selection process also provides an opportunity to receive feedback from experts, which can help us refine our solution and make it even stronger.

We are therefore applying to the MIT Solve Challenge because it represents a unique opportunity to drive innovation, scale our impact, foster collaboration, and it aligns with our mission and values. The challenge offers a platform to further develop our solution, access a network of ecosystem players, build a supportive community, and create lasting change. We are eager to be a part of this esteemed initiative and contribute our efforts towards addressing global challenges and making a positive difference in the world.

Fully Digital Insurance Ecosystem

Our platform is a completely digital insurance ecosystem. From price comparison to policy purchase, claims management, and policy management. Our digital platform puts everything in one place. The automated claims management feature allows users to initiate, track and monitor their claims application which aids transparency and credibility.

AI and Data Analytics

We also use AI and data-driven analytics to tailor insurance services to the specific needs of each customer, and detect fraudulent claims application.

Insurance As An Embedded Service

We are providing businesses with access to the entire value chain of insurance as a value add for their customers.

Industry Innovation

The insurance industry in Nigeria (and wider Africa) is still predominantly a brick-and mortar industry. We are digitizing the entire end-to-end insurance process. We will also be providing industry stakeholders with data and data- driven analytics to improve product innovation and pricing and make insurance services tailored to the specific needs of customers.

As an insurtech company with operations in Nigeria, we are targeting several impact goals that we believe can create meaningful change in the country's insurance industry and improve the lives of Nigerians.

Improved Access & Insurance Literacy Level

Our priority impact goal is improving insurance access and literacy among Nigerians. Nigeria has a large population of over 200 million people, but the country’s insurance penetration is very low. This means that there are millions of Nigerians who do not have any form of insurance coverage and, as such, are vulnerable to financial shocks. We will play a key role in improving access to insurance products that are affordable to a wider range of Nigerians. We will also invest heavily in insurance education and awareness campaigns to help people understand the value of insurance in their everyday lives.

Industry Innovation

Our second impact goal is to drive innovation and growth within the insurance industry. As a rapidly developing economy, the Nigerian insurance industry has many opportunities for new and innovative insurance products and services. By working with other relevant stakeholders in the industry, such as regulators and traditional insurers, we will help create an insurance ecosystem that fosters innovation and growth.

Improved Customer Experience

Another impact goal that we will be targeting is to improve the overall customer experience. More often than not, insurance is considered too complex to understand and navigate, leaving customers frustrated. Our use of technology and digital tools will make the insurance experience simpler, faster, and more transparent. This will in turn help rebuild trust with customers and lead to an increased uptake of insurance products.

Improved Access To Healthcare

Our fourth impact goal is to improve access to quality healthcare for Nigerians. Today, about seventy percent (70%) of the country’s population pays out of pocket for healthcare. Receiving healthcare is a challenge for low-income households that cannot afford such out-of-pocket costs. By providing affordable health insurance products, we can play an important role in promoting quality healthcare in the Nigerian economy.

In conclusion, the next five years present us with an exciting opportunity to drive industry growth, promote financial inclusion, and improve customer experiences. By focusing on these impact goals, we will leverage technology to transform the insurance industry and better serve our customers. As the insurance industry continues to evolve, we will be well-positioned to succeed and make a positive impact in Nigeria.

Improved Access & Insurance Literacy Level

A measure of our progress toward this goal will be a 2% increase in the country’s insurance penetration rate in the next 5 years.

Industry Innovation

A measure of our progress for this goal would be to have successfully helped 30% of traditional insurers transition to digital operations.

Improved Customer Experience

The number of repeat businesses/retained customers and our user ratings over the five-year period will serve as an indicator of our progress with respect to this goal.

Improved Access To Healthcare

A 5% reduction in the number of Nigerians paying out-of-pocket for healthcare services will be an indicator of our progress for this impact goal.

The Fortyfi mobile and web application is broken down into 3 core functionalities as follows:

Insurance Policy Purchase

The app has a policy purchase feature that offers prospective policyholders a range of options of the best insurance policies for a particular insurance type, tailored specifically to suit the policyholder’s priority need. This function is made possible by integrating an AI driven algorithm in-app that recommends and quotes insurance policies using data collected from the user.

Policy Management

The Fortyfi app has a wallet feature that contains all active policies subscribed to by a user and allows the user to monitor and coordinate insurance purchases and execute premium renewals. It also has a feature that alerts users ahead of expected due date of policy renewals and summarizes total premium payments across all insurance types on a dashboard for easy analytics.

Claims Management

Another key feature of the Fortyfi app, the claims management feature allows users to make insurance claims swiftly on any active policy as at when due. This feature not only allows policyholders to initiate the claims process, but it also allows them to track/monitor the progress of their claims request and receive approved payouts. The claims feature uses AI to verify the authenticity of claims, to ease and fast-track the entire claims process.