ETAP, a Nigerian company in insurance technology that makes it simpler to get and pay vehicle insurance claims, has acquired US$1.5 million in pre-seed capital to grow its team and drive automobile insurance adoption throughout Africa.
Out of 12 million registered vehicles in Nigeria, 79% don’t have genuine motor insurance. Either they have fake certificates (which owners are primarily unaware of) or are not covered.
Following the stat, many of these car owners having genuine insurance policies also fail to renew them when they expire, a contravention of the law in Nigeria, which demands that every vehicle must be covered by insurance. These issues come from the fact that most transactions in the region are done manually and, in many cases, through agents, exacerbating the problems this is what ETAP is out to solve following their new seed round.
The financing was headed by Mobility 54, Toyota Tsusho’s venture capital arm, and CFAO Group, with Tangerine Insurance, Graph Ventures, Newmont, and other angel investors also participating.
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The company uses machine learning to generate intelligent risk profiles that calculate appropriate rates for each driver, allowing them to save money by driving safely.
ETAP Vision
“We think that, like any other digital service, Nigerians should be able to obtain and claim vehicle insurance without having to “call a person.” “We also believe that paying excellent drivers would promote better driving and make our roads safer,” ETAP CEO and founder Ibraheem Babalola said.
“This is why we designed Africa’s most powerful vehicle insurance app, and we’re ecstatic to have received these funds to enable us to bring on more customers.” The purchasing and claiming insurance in Africa is usually disconnected from most people’s everyday lives, but we’re changing that by making it as enjoyable as any other activity that customers can access on their mobile phones.”
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The funds will be used to launch ETAP’s app, which will enable users to purchase insurance in 90 seconds, process claims in three minutes or less, and earn points for good driving and avoiding accidents.
In addition, the business will investigate new opportunities for offering insurance services to automobile owners in other African nations.
About ETAP
ETAP is a car insurance app that makes buying and claiming car insurance as easy as taking a picture, using lightning-fast technology to prevent frauds, unlock better experiences and fairer prices for our customers by offering risk profile based instant cover, crash notification and emergency support, instant claims payment, introducing flexible automated payment plans as well as showing driving behaviour insights with driver score (per trip completed) and Safe Driving Rewards for drivers who drive safely.
With ETAP, the entire process of buying and claiming insurance happens exclusively on a smartphone, enabling a seamless and enjoyable insurance experience for users.
ETAP uses machine learning to build intelligent risk profiles that determine appropriate premiums for each driver, allowing them to achieve lower premiums by driving safely.
Using advanced telematics, the driving experience is gamified to improve driving behaviour, and drivers can earn Safe Driving Points that can be exchanged for shopping vouchers for the most in-demand retail outlets, fuel, cinema and concert tickets, and other exciting experiences.
Since launching the beta version of its app in November 2021, ETAP has insured more than 130,000 individual trips and over 500,000 kilometres of car journeys, representing more than eight times the total distance of paved roads in Nigeria.