Insurance technology company ETAP has launched ETAP Takaful, a car insurance product based on Islamic principles that aims to redistribute funds to users and support social good in their communities. Policyholders contribute to a common fund to cover each other against damage and loss. Once a year, remaining funds after claims and associated costs are deducted are redistributed to policyholders or their chosen non-profit cause. Policyholders can also receive their surplus via cashback or a discount on renewals. ETAP Takaful is open to both Muslim and non-Muslim users.
The global takaful insurance market is projected to reach $97.17 billion by 2030, and ETAP is the first African insurtech to enable the option on the continent. Users can access the option on the ETAP app in Nigeria, alongside other insurance options. Users can begin to give back to their communities while having the peace of mind that comes with having their cars insured. Leveraging ETAP’s technology, drivers can buy insurance in 90 seconds, complete claims in 3 minutes or less and get rewarded for good driving and avoiding accidents.
ETAP’s business model is based on the concept of Shared Value Insurance, which incentivises 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 retail outlets, fuel, cinema and concert tickets, and other 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. ETAP aims to design new products that meet the diverse needs of people across the continent to drive insurance penetration in Africa, where less than 3% of the population own any kind of insurance.
Source: africamoneydefisummit.com
