Nigerian insurtech ETAP expands to Ghana after license approval

Nigerian insurtech company ETAP is expanding into Ghana after receiving an operational license from the National Insurance Commission (NIC) of Ghana.

ETAP said the licensing of an insurtech company is the first of its kind in Ghana, a country that currently has an insurance penetration rate of just 2%.

This is the startup's first expansion beyond Nigeria and will enable it to process claims, collect premiums and provide other digital auto insurance products and services to consumers and businesses in the Ghanaian market. 

ETAP plans to begin rolling out its services for local drivers later this month through a collaboration with Hollard Insurance Ghana, operating as ETAP-Hollard.

"Ghana represents a key market for us, and this license allows us to bring our innovative mobility insurance solutions to a country where insurance penetration is still low, yet the potential for growth is immense," ETAP Founder and CEO Ibraheem Babalola said in a statement.

"With this expansion, we are not just launching a product; we are creating new opportunities, fostering financial inclusion, and contributing to the development of a more secure future for Ghanaians," Babalola added.

Daniel Boi Addo, MD of Hollard Insurance, described the partnership as a significant step forward, underlining its potential to promote sustainable and inclusive growth in the insurance sector.

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"Partnering with ETAP allows us to deliver tailored insurance solutions while rewarding responsible driving," he said.

Growing insurance penetration in Ghana

Despite Ghana's low insurance penetration rate, the local insurance market is forecast to have substantial growth potential.

ETAP said that the NIC has been active in promoting insurance awareness and enforcing regulations aimed at improving the credibility and stability of the insurance sector, which is expected to boost penetration over time.

The insurtech said its products and services "leverage cutting-edge technology to deliver seamless user experiences, instant claims processing, and personalized policy management."

ETAP claims that through its platform consumers can buy insurance in 90 seconds, complete claims in three minutes or less, and get rewarded for good driving and avoiding accidents via the startup's app.

ETAP is attempting to inspire behavioral change on African roads and has gamified the driving experience, using advanced telematics to monitor driving behavior and rewarding drivers with 'Safe Driving Points' that can be exchanged for shopping vouchers for items like fuel or cinema and concert tickets.

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Drivers also have flexible coverage options ranging from daily to weekly, monthly, quarterly and annual plans.

Businesses can manage up to 1,000 vehicles in their fleet, enabling them to streamline insurance processes, oversee driver performance rewards and monitor driver behaviors in real-time on one platform.

Since launching in 2022, ETAP now has thousands of consumer and business customers in Nigeria and has aspirations for further expansion to help deepen insurance penetration across Africa.