ETAP launches Takaful, Africa’s first digital car insurance product
By Olivia Nnorom
ETAP, an insurance technology firm, has launched ETAP Takaful, a new ethical car insurance product that is based on Islamic principles and designed to give back to policyholders and their communities.
The company, in a statement made available to Business A.M, said ETAP Takaful is open to Muslim users that are looking for insurance products that align with their religious beliefs and non-Muslim users who want to benefit from the value that Takaful offers. It added that the unconventional offering is designed to redistribute funds to users and support social good in their communities.
The statement said ETAP is the first African insurtech to enable takaful insurance, a market projected to reach $97.17 billion by 2030, globally. It informed that people in Nigeria 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.
On the requirements,it said interested ETAP non-users 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 three 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,” the company stated.
Ibraheem Babalola, CEO and founder of ETAP, said that the motivation behind the innovation was centred on religious constraints limiting muslims from enjoying insurance products.
Babalola pointed out that a vast majority of insurance products on the Nigerian market is not an option to most muslims because the structure of their policies go against their religious belief.
“To drive insurance penetration in Africa, where less than three 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,” he said.
Babalola added that ETAP has 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 the app and enable more enjoyable driving experiences.
He also noted that 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.
According to the ETAP CEO, the company’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. He noted further that the company uses machine learning to build intelligent risk profiles that determine appropriate premiums for each driver, allowing them to achieve lower premiums by driving safely.