South African school payments startup Karri has launched an education insurance product that allows parents to ensure their children’s school fees are covered until they are 18 even in the event of parental death or serious injury.
Founded in 2017, Karri began with a pilot in four schools across the Western Cape, but is now in use across thousands of schools across Africa.
The payments platform allows schools to collect funds from parents for things such as lunch and trips, who are able to make payments via the app. It reconciles what payments have been received and sends reminders.
Doug Hoernle, Karri CEO, said the idea for an education insurance product came up after he ran the numbers on his kids’ school fees over the next 18 years.
“It was unnerving. That’s manageable while I’m here and earning. But after two close friends of ours, both parents, died in a freak accident last year, I couldn’t ignore a question I’d been avoiding: if I were gone tomorrow, my kids would have a roof over their heads and grandparents who love them. But their education? That’s a different story,” he said.
So the Karri team went looking for a solution.
“What we found was a category full of life policies that take months to pay out, funds tied up in estates while school fees go unpaid, and products designed for a world that no longer exists. Nothing built for how modern families actually live. So we built it,” Hoernle said.
Karri Cover is education insurance designed specifically for South African parents, underwritten by Guardrisk, one of South Africa’s leading insurers. Funds are paid into a children’s trust, managed by professional trustees, and paid directly to a child’s school from day one.
“And if you don’t claim, it converts into life cover for your family, plus a lump sum for your child at 18,” said Hoernle. “Last week, I was proud to be the first customer. Today, I’d like to share this with you. If you have children in school or heading there soon, this was built for you.”
