ETAP, an insurance technology company that creates solutions to improve the automotive experience across Africa, has launched ETAP Takaful, an ethical car insurance product that is based on Islamic principles and designed to give back to policyholders and their communities.
What is the mission behind ETAP Takaful?
ETAP Takaful is designed to redistribute funds to users and support social good in their communities. Policyholders contribute to a common fund to cover each other against 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.
This includes nonprofit organizations working towards ending homelessness, educational programs, healthcare initiatives for the bottom of the pyramid, Human Rights Advocacy and orphanages. Policyholders can also get their surplus via cashback or a discount on renewals.
The global takaful insurance market is projected to reach $97.17bn by 2030 and ETAP is the first African insurtech to enable the option in Africa. Starting in Nigeria, users can now access the option on the ETAP app alongside other insurance options and 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 tech 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 the fastest claims process.
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 what Takaful offers.
What does the product mean for ETAP?
Ibraheem Babalola, Chief Executive Officer and Founder of ETAP, said, “To drive insurance penetration in Africa, where less than 3% 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 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 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’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 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 experiences. The firm 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.