ETAP, a Nigerian insurance technology company, has launched ETAP Takaful, a new ethical car insurance product that is based on Islamic principles.
Unlike conventional insurance, 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 damage and loss, and once a year, ETAP will collate all the remaining funds after claims and associated costs have been deducted and redistribute them to policyholders, or to their chosen nonprofit cause.
This may include nonprofit organizations working towards ending 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 and ETAP is the first African insurtech to enable the option on the continent.
ETAP Takaful is open to Muslim users looking for insurance products that align with their religious beliefs and non-Muslim users who want to benefit from the value that Takaful offers.
According to Ibraheem Babalola, CEO and Founder of ETAP, “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.
“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.
“We have 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 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.