ETAP, an insurance technology firm, has launched ETAP Takaful, a new car insurance product.
The firm stated that its product was designed to redistribute funds to users and support social good in their communities.
It explained that policyholders, i.e., people who subscribe to the product, will contribute to a common fund to cover each other against damage and loss, and once a year, it will collate all the remaining funds after claims and associated costs have been deducted and redistribute to policyholders, or to their chosen nonprofit cause.
It added that policyholders can also receive their surplus via cashback or a discount on renewals.
In a statement, the Chief Executive Officer and Founder of ETAP, Ibraheem Babalola, said, “To drive insurance penetration in Africa, where less than three 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.”
The firm noted that the global Takaful insurance market is projected to reach $97.17bn by 2030. It added that Nigerian users can now access the option on its app alongside other insurance options and immediately begin to give back to their communities while having their cars insured.