Denis Opudo
Fo-sho startup was launched late last year in November. It is an insurtech platform that enhances online insurance activities. Despite few months of operation, the startup took part in the Startupbootcamp accelerator in Cape Town. It has also secured funds for capital investment.
According to the Avi Naidoo, Co-founder Fo-sho, nearly ZARR25 billion (US$2.11 billion) is fraud in South Africa yearly. The insurance industry could not totally account for these amounts thus making people to be disenfranchised by insurance industry operations. Customers over the years have been facing challenges ranging from old technology, delay repayment, high operation costs among many others. The Fo-sho company has come up with strategies to relieve customers from this crisis. Its main goal is to provide better ways of securing customers asset. He added that the initiative is a unique ‘first-of-its-kind’ insurance model which incorporates the social aspects in the insurance sector. It allows customers to take short-term insurance cover but with a long-term benefit. The initiative works under common –pool principle where customers join hand to share insurance risks while minimizing premium. The Fo-sho will be made available as from the beginning of Aril this year through an android and web application.
Research conducted by the startup has indicated that most clients are not well informed about the insurance policies. This has led to a large population of people fearing to take an insurance cover even in the 21 centuries. Normally, people have a stereotype that insurance at a monthly expense but Fo-sho product make it look like a monthly asset. For instance, only 15% of people in South Africa have taken an insurance cover out of over 35 million adults in the country. This forms the basic market opportunity for the Fo-sho company.
The company has signed several commitments with leading sponsors including Startupbootcamp programme. The newly launched platform begun with nearly AR10 million (US$714,000) commitment comprise of joined SMEs portfolio and middle class. The demand for Fo-sho products in other potential economies has posed a great concern to the company. The company is also looking forward expansion in other Africa countries as well as going international in the future.
Mr. Naidoo added that reducing premium costs act as an incentive to customers to gain value for their money as well. Although revenues and profits are blood-life of any insurance company, Fo-sho tends to focus on customer satisfaction. The startup makes earnings based on the percentage of premium income.
