Assistance on SA's Urban Ubuntu Funeral Insurance for African Diaspora
In the heart of South Africa, a new startup named Urban Ubuntu is making waves in the insurance industry. Founded by Shingie Maramba in 2019, the company is set to revolutionise the way diaspora communities manage their financial burdens related to funerals and repatriations.
Urban Ubuntu has secured support from partners such as Old Mutual, AVBOB, Kenbright, and KEDASA SACCO. The startup's unique business model aims to redirect a significant portion of remittances into structured funeral cover, offering a solution tailored to the cultural needs of diaspora communities.
The platform's design is multi-lingual and low-bandwidth, making scaling across Africa and the diaspora practical. This innovative approach is expected to tap into a market valued at US$30 billion annually, with a focus on Kenyans in the United States, Europe, and Australia initially, followed by expansion into Old Mutual's 14 markets in Africa.
Urban Ubuntu generates revenue through a variety of channels. The startup earns a 10% commission on premiums, 8% from sales and servicing, and 2% from infrastructure and platform use. Despite the presence of competitors, Maramba claims that none fully address the diaspora gap.
The cost of funerals for diaspora families can range from US$7,000 to US$10,000 per case. Traditional insurance providers often lack cultural sensitivity, fast payouts, and mobile-first convenience, which Urban Ubuntu aims to address.
Early traction for Urban Ubuntu has been strong, with 70% of diaspora respondents expressing interest in culturally tailored funeral cover. Projected uptake for the first year is between 15,000 and 20,000 policies, with 5,000 of those being Kenyans in South Africa.
KEDASA and other partners have plans to co-brand and distribute Urban Ubuntu's policies, further expanding its reach. However, the partner responsible for the distribution of Urban Ubuntu's offerings in the United States, Europe, and Australia remains unidentified in the provided search results.
Urban Ubuntu's offerings are not limited to insurance. The platform also boasts AI-driven cultural rite-matching, blockchain-backed transparency, and diaspora-friendly payments like M-Pesa, forex, and banking apps. These features aim to provide a seamless and culturally sensitive experience for its users.
As Urban Ubuntu moves towards its November go-live, it is poised to redirect a portion of the US$5 billion in annual remittances flowing into Kenya into structured funeral cover that is affordable, customisable, and digital. The startup's innovative approach and commitment to the diaspora community make it a company to watch in the insurance industry.
