LeapFrog CEO, awarded insurance industry gold medal, calls for industry to reach 4 billion under-served consumers by 2030
Dr. Andy Kuper honoured for LeapFrog companies reaching 130 million people in a decade
- LeapFrog companies reach over 130 million consumers in Africa and Asia with financial tools or healthcare, of whom 68 million are served with insurance; LeapFrog CEO Andy Kuper has received the International Insurance Society Gold Medal and Founder’s Award for this achievement
- At his acceptance speech at the annual International Insurance Forum in Berlin last night, Dr Kuper set a goal for LeapFrog companies to reach 1 billion emerging consumers with essential services by 2030
- He called for the world’s largest insurance firms and investors together to close the global insurance protection gap, covering 4 billion people by 2030
- The spending power of those rising consumers will reach $30 trillion by 2025, presenting a historic opportunity for investors seeking to achieve strong and diversified returns
Berlin 11 July 2018:
Dr. Andy Kuper, founder and CEO of LeapFrog Investments, has received the 2018 Founder’s Award and Gold Medal from the International Insurance Society for his pioneering work. Launched in 2008, LeapFrog invests in companies that deliver health and wealth services for emerging consumers, with portfolio companies reaching 130 million people to date. In his acceptance speech at the International Insurance Forum in Berlin, Dr Kuper announced LeapFrog’s intention, through its portfolio of companies, to reach 1 billion emerging consumers with essential services by 2030. He called for the world’s largest insurance firms and investors together to close the global protection gap, covering 4 billion people, by 2030.
“Through Andy’s visionary leadership, LeapFrog has fashioned responsible investment through thought leadership, collaboration and demonstration. In just one decade, impact investing has exhibited dramatic result with exponential benefit to the underserved, emerging economies and the broad insurance industry,” said James Vickers, Chairman of the International Insurance Honours Committee, and Chairman, Willis Re International.
LeapFrog portfolio companies have grown revenue 40% a year since investment. The firm has also sold on companies to, and enabled new market entries for, the likes of Prudential Plc, Swiss Re, XL Catlin and Allianz. LeapFrog is backed by some of the world’s largest insurance and pensions investors, including Prudential Financial Inc., AIG, Swiss Re, AXA and Zurich.
“LeapFrog is a game changer,” said Mike Morrissey, International Insurance Society President and CEO. “It has expanded the investment market and enabled leading insurers to amplify their footprint in emerging markets to the benefit of the industry and those developing countries, all the while improving the lives of millions. Andy’s work has had a profound impact on the insurance industry and society in general. We’re proud to honour him and the work of LeapFrog Investments.”
The spending power of 4 billion emerging consumers is predicted to reach $20 trillion by 2025. Currently, only 70 per cent of these consumers have access to formal financial services, presenting a serious protection gap that imperils their security and productivity.
“We are at a historical moment in time where four billion people in Africa and Asia and beyond are rising out of low-income living and towards the middle class. This is being underpinned by the rapid technological change brought about by smart phone adoption, and coupled with evolving regulatory environments that is making these markets even more attractive for investment,” Dr. Kuper, founder and CEO of LeapFrog Investments, said. “LeapFrog companies today reach 130 million people, of whom 110 million are emerging consumers, and do so profitably and sustainably. Yet that is merely a beginning. Our goal for 2030 is to reach one billion people with the essential services – the safety nets and springboards to changing their own lives.”
With mobile penetration in emerging markets at over 80 per cent versus insurance penetration of less than 3 per cent, there is a massive market opportunity to provide insurance to underserved customers, especially through mobile channels. $15 trillion in consumption is forecast to come from emerging economies by 2020. They will account for the majority of the world’s GDP by 2030.
“LeapFrog companies today reach 130 million people, of whom 110 million are emerging consumers, and do so profitably and sustainably. Yet that is merely a beginning. Our goal for 2030 is to reach one billion people with the essential services – the safety nets and springboards to changing their own lives.”
Dr. Andy Kuper, CEO LeapFrog Investments