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Nigeria’s Etap will get $1.5M pre-seed to make shopping for automotive insurance coverage simpler

Solely 21% of the 12 million registered autos on Nigerian roads have real motor insurance coverage, as the remainder both have faux certificates (house owners are largely unaware) or aren’t lined in any respect.

This report additionally states that a variety of automotive house owners holding real insurance coverage insurance policies additionally fail to resume them after they expire, a violation of the legislation in Nigeria, which calls for that each automobile should be lined by insurance coverage. All these challenges stem from the truth that most transactions within the business are nonetheless finished manually and, most frequently, by brokers, which additional exacerbates the issues.

To bridge the hole, insurtechs like Etap have over the previous few years emerged in Nigeria, and throughout Africa, to smoothen the method of shopping for insurance coverage and making claims. Etap declare to allow motorized vehicle house owners to buy insurance coverage in 90 seconds and full claims in three minutes.

The startup is now on an growth drive throughout the West African nation following a $1.5 million pre-seed funding in a spherical led by Mobility 54; the enterprise capital arm of Toyota Tsusho and CFAO Group.

“We have now nice merchandise and glorious worth propositions. However we all know that the merchandise and worth proposition will be larger and that’s why we sought out companions that we now have proper now. Our plan is to have essentially the most most popular insurance coverage merchandise and to develop and scale this throughout Africa. I really feel like we’re completely positioned to realize that,” Etap founder and CEO Ibraheem Babalola informed TechCrunch.

Tangerine Insurance coverage additionally Etap’s underwriter, Graph Ventures, Newmont and several other different angel traders participated within the spherical.

Nigeria's Etap claim to enable motor vehicle owners to purchase insurance in 90 seconds and complete claims in three minutes.

Etap declare to allow motorized vehicle house owners to buy insurance coverage in 90 seconds and full claims in three minutes. Picture Credit: Etap

Babalola began constructing Etap final yr annoyed by the complexities and delays concerned in buying insurance coverage. In his personal phrases, he got down to make shopping for insurance coverage and making claims as straightforward as taking an image – therefore the identify Etap.

“The concept itself is from being a annoyed buyer; my insurance coverage would expire and I wouldn’t get a notification to resume it…I at all times needed to make a name to a man who would assist me renew it. I believed that there’s a option to do it higher,” mentioned Babalola, including that policyholders obtain notifications when their protection expires, and may go for computerized renewal.

Babalola, who has expertise constructing and serving to monetary companies and proptech startups to scale, beforehand labored with an govt of a prime insurance coverage firm in Nigeria, which sparking his curiosity within the sector.

“Nigeria has one of many highest danger environments on the earth and an insurance coverage penetration of lower than 2% — that relationship is loopy as a result of the upper the chance the extra the propensity to need to defend your self in opposition to occasions; however in Nigeria and the remainder of Africa, this isn’t the case. This wants to alter,” mentioned Babalola.

He added that, “Having all these experiences from being on the 2 sides; being a buyer and near the operator, and expertise in constructing startups; I believed it’s essential to reimagine insurance coverage — To reimagine the providing, how folks entry it, person expertise — to make it extra versatile, and transparency — by constructing belief and giving folks extra worth.”

The startup launched the beta model of its app in November final yr, enabling folks to purchase insurance coverage in response to their wants; per journey, each day, month-to-month or yearly. But making the method simpler and versatile is just not the one driving power behind Etap’s development; the startup additionally tailors the worth of its merchandise in response to driver habits. They’ve additionally gamified the merchandise too, as clients earn and redeem factors based mostly on their historical past.

“With our retail distribution, you get profiled based mostly on a bunch of information factors that place you in a danger class,” he mentioned.

The startup’s end-to-end companies additionally embody pre-loss inspection (finished when signing up) and post-accident opinions, all of which is predicated on photos. To stop fraudulent claims, the app comes with geolocation tags, timestamps and different options like crash notification.

Mobility 54’s undertaking supervisor, Yumi Takagi mentioned, “Etap is addressing many challenges that impression the automotive expertise in Africa, and we’re excited to help and work with them to convey their innovation to extra drivers throughout the continent. We consider that ETAP will interact with this essential function and revolutionize the automotive insurance coverage business with their highly effective expertise.”

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