Takaful, ETAP’s Islamic-inspired car insurance, gives back to policyholders and their communities. ETAP is the first African insurtech to offer takaful insurance, which is estimated to reach $97.17 billion by 2030.
Insurtech firm ETAP has introduced an ethical car insurance product that is founded on Islamic values and aimed to give back to policyholders and their communities: ‘Takaful’.
Takaful, ETAP’s newest initiative, is aimed to redistribute income to users and encourage social good in their communities. The insurance plan sees policyholders contribute to a single pool – protecting each other against harm and loss. Once a year, ETAP collates all of the remaining funds after claims and associated costs have been subtracted, and redistributes them to the policyholders – or to their selected charitable cause.
Currently, the offering covers charitable groups working towards eradicating 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.
The global takaful insurance market is projected to reach $97.17 billion by 2030. ETAP is the first African insurtech to offer this choice on the continent. The ETAP app in Nigeria offers these and other insurance options. The software lets people help their communities and feel safe with auto insurance.
Shared value insurance
ETAP’s business model is founded on the notion of ‘Shared Value Insurance’, which focuses on incentivising people with prizes to minimize their insurance risk by adopting good behaviour.
The ETAP offers drivers the chance to earn “Safe Driving Points”. These points can be redeemed for shopping vouchers, fuel, theatre and concert tickets, and other experiences. The company also uses machine learning to create intelligent risk profiles. These profiles help to calculate appropriate premiums for each driver based on their driving habits. Careful drivers can earn cheaper premiums using this system.
Ibraheem Babalola, CEO and creator of ETAP, underlined the necessity for such an offering in Africa: “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.
Nigeria has a population of 220 million people, with almost half being Muslims. Most insurance products in Nigeria are not viable for Muslims because the policies go against their religious beliefs. However, a new insurance app called ETAP Takaful has been developed. This app is exciting and offers many benefits to users. With ETAP Takaful, more people, including Muslims, will be able to enjoy the benefits of the app. It will also enable more joyful driving experiences for users.