AIICO partners ETAP to deepen car insurance penetration in Nigeria

AIICO Insurance Plc, a leading insurance, pensions management, and asset management firm has partnered with ETAP, a renowned technology company specialising in the development of innovative solutions for the vehicle insurance sector, to drive increased penetration of car insurance in Nigeria.

Despite being Africa’s largest economy and one of the biggest automotive markets on the continent, car insurance penetration in Nigeria remains relatively low with less than 30 percent of registered vehicles having genuine insurance for at least, third-party protection.

According to a report from the Nigerian Insurance Association (NIA), as of January 2022, only about 3.4 million or 28.3 per cent  out of the 12 million cars on Nigerian roads are insured.

To this end, the partnership will combine AIICO’s market-leading car insurance product and ETAP’s game-changing, tech-enabled distribution and customer acquisition model to drive the adoption of car insurance in Nigeria.

With ETAP, drivers simply need to download the app or launch the enterprise platform (for organisations), provide basic information about their car and driving history, and they can buy insurance in 90 seconds and complete claims in three minutes or less.

ETAP also enables customers on the app the flexibility of paying premiums weekly, monthly, quarterly and annually. The app also uses advanced telematics to monitor driving behaviour such as speed, acceleration, braking, cornering and focus.

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. ETAP 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.

Commenting on the partnership, Gbenga Ilori, head of retail business of AIICO Insurance, said, “We are elated to unveil our collaboration with ETAP, marking the inception of a transformative era in car insurance. By harnessing the power of gamification, we are poised to shift perceptions around car ownership and driving in Nigeria. This initiative will not only elevate the driving journey but also significantly enhance safety on our roads.”

On his part, Ibraheem Babalola, CEO of ETAP, said, “We are proud to collaborate with AIICO Insurance on this transformative collaboration. The app’s ability to reward safe driving habits while providing rewards for doing so as well as quick access to insurance purchase and claims payment will undoubtedly empower car owners and encourage responsible behaviour on the roads.”