ETAP, a Nigerian insurtech startup that raised a $1.5 million pre-seed in 2022, has expanded into Ghana, after securing an operational license from the nation’s Nationwide Insurance coverage Fee (NIC).
ETAP is increasing into Ghana by a joint partnership with Ghana’s main insurance coverage agency, Hollard Insurance coverage Ghana. The partnership will permit Hollard Insurance coverage to underwrite the insurance coverage whereas ETAP will present the tech platform and run the operations.
“We’ve got partnered with Hollard due to their deep understanding of the market,” Ibraheem Babalola, ETAP CEO instructed TechCabal.
Launched in 2022, ETAP claims it permits customers to purchase automobile insurance coverage in 90 seconds and file claims in three minutes. The corporate provides instantaneous declare processing, customizable protection choices, and a rewards system that incentivises protected driving conduct. The insurtech additionally permits drivers to pay for insurance coverage in accordance with their wants, per journey, every day, month-to-month, or yearly.
The enterprise which is at present current in 12 Nigerian states expects the Ghanaian market to contribute considerably to its income streams. ETAP claims it has processed practically ₦20 billion sum assured throughout its complete and third-party insurance coverage insurance policies.
Whereas Nigeria presents a bigger market, Babalola believes Ghana provides extra enterprise potential attributable to its larger insurance coverage penetration charge. One in three automobiles is insured in Ghana, whereas solely certainly one of 5 registered automobiles is insured in Nigeria.
“Nigeria has one of many highest danger environments on the earth. It’s much less disturbing to do enterprise in Ghana. Ghana is much less chaotic,” he stated.
The corporate will compete with Octamile & Redpear in Ghana and different conventional insurance coverage corporations. The Motor Automobile Insurance coverage market in Ghana is projected to succeed in a market quantity of $0.66 billion in 2029.
The enterprise additionally plans to launch in Cote d’Ivoire to make inroads into the Francophone area.