Bayzat, a UAE-based comparison site for health insurance services, banking products and car insurance has received a $1 million round of investment, led by BECO Capital.
Bayzat allows individuals and companies to find, compare and buy insurance policies, credit cards, bank loans, saving accounts and other services. Users can also manage those via their mobile or the web.
While a number of comparison platforms have launched in MENA over the last few years, Bayzat may be the first to attempt to simplify the health insurance purchasing process. According to Bayzat CEO and cofounder Talal Bayaa, the company’s services are popular with regional and multinational corporations operating in MENA who wish to offer their employees quick and easy access to insurance information, approved healthcare providers, claim forms and other documents.
“Even though we are the only player today, the health insurance sector will undoubtedly attract competitors,” Bayaa said. “There is still a long and exciting road ahead for us, so we need to stay focused on continuing to execute our strategy to capitalize on our first mover advantage.”
As this investment is the only institutional funding round completed by Bayzat, it will be used to accelerate the company’s growth and expand its services and reach across the UAE. "We were very fortunate in that all our investors immediately understood the problems we were solving in the medical insurance sector through our technology,” Bayaa said.
Regional venture capital firm, BECO Capital, focuses exclusively on supporting technology startups in promising sectors and has a history of assisting early-stage organizations. BECO’s investments include Propertyfinder.com and Careem.com.
“Bayzat is a perfect match for our investment thesis of discovering young and promising regional technology companies with talented management, and backing them with funds and operational support to accelerate their growth,” BECO Capital cofounder and managing partner Amir Farha said in a statement.
Healthcare expenditures in the GCC region have grown 7.9 percent year-on-year over the past 10 years, according to BECO Capital. That spending is expected to reach $79.2 billion this year. In parallel, the overall GCC insurance industry almost tripled in value between 2006 and 2013. The UAE insurance market is estimated to be worth $2.7 billion and with the Dubai Health Insurance Law currently being rolled out, the health insurance sector is expected to grow by over 10 percent in the coming year.
Bayaa explained in a statement that the platform simplifies insurance policy terms and conditions, making it easier for employees to understand their benefits. Bayzat’s platform also assists in the enrollment process by allowing users to upload required documents. An interactive map identifies locations of hospitals, clinics, doctors, pharmacies and laboratories within the insured’s provider network.
“Our research showed that HR managers, employees, businesses and insurance companies were in real need for an easy, efficient and cost-saving solution that simplifies the process of understanding the insurance plan and medical network,” Bayaa said. “We wanted to change the way families, employees and employers think about health insurance.”