ETAP, a Nigerian insurance technology upstart operating in the automotive industry, has launched ETAP Takaful, a new car insurance product based on Islamic principles and designed to give back to policyholders and their communities.
ETAP Takaful is designed to redistribute funds to users and support social good in communities and is expected to tap into the global takaful insurance market which is projected to reach $97.17 billion by 2030.
According to Ibraheem Babalola, CEO and Founder of ETAP, “To drive insurance penetration in Africa, where less than 3 per cent of the population own any kind of insurance, we need to design new products that meet the diverse needs of people across the continent. In a country like Nigeria where Muslims make up almost half of the 220 million population, the vast majority of insurance products on the market are not an option to most Muslims because the way the policies are structured goes against their religious belief. We have built one of the most exciting insurance apps in the world and ETAP Takaful will make it easier for more people to access the many benefits that come with our app and enable more enjoyable driving experiences”.
ETAP Takaful will target nonprofit organizations working towards ending homelessness, educational programs, healthcare initiatives for the bottom of the pyramid, Human Rights Advocacy and orphanages. Policyholders can also receive their surplus via cashback or a discount on renewals.
ETAP Takaful policyholders contribute to a common fund to cover each other against damage and loss, and once a year, ETAP will collate all the remaining funds after claims and associated costs have been deducted and redistribute to policyholders, or to their chosen nonprofit cause.
Starting in Nigeria, users can now access the option on the ETAP app alongside other insurance options and immediately begin to give back to their communities while having the peace of mind that comes with having their cars insured. They simply need to download the app, provide basic information about their car and driving history, and choose the level of coverage they require (daily, weekly, monthly, quarterly or annual) and they can start enjoying the benefits of an ethical car insurance product.
Leveraging ETAP’s game-changing technology that allows drivers to buy insurance in 90 seconds, complete claims in 3 minutes or less and get rewarded for good driving and avoiding accidents, users can now enjoy an added layer of ethical insurance on top of what is already the fastest claims process on the market.
ETAP Takaful is open to Muslim and non-Muslim users who want to benefit from the value that Takaful offers.
ETAP’s business model is based on the concept of Shared Value Insurance, which focuses on incentivising people with rewards to reduce their insurance risk by adopting good behaviour. With ETAP, drivers are able to earn Safe Driving Points that can be exchanged for shopping vouchers for the most in-demand retail outlets, fuel, cinema and concert tickets, and other exciting experiences. The company also uses machine learning to build intelligent risk profiles that determine appropriate premiums for each driver, allowing them to achieve lower premiums by driving safely.
