In Nigeria, where 12 million vehicles are registered, only 21% have valid motor insurance. The rest either operate with fake certificates (often unknowingly) or are uninsured altogether. Compounding the problem, many vehicle owners with genuine insurance fail to renew their policies, a violation of the law requiring mandatory vehicle insurance.
The inefficiencies in the Nigerian insurance sector are largely due to the reliance on manual processes and intermediaries. These challenges have created an opportunity for insurtech startups like Etap to revolutionize the industry by making it easier for drivers to purchase insurance and file claims.
Speeding Up Insurance with Technology
Etap enables vehicle owners to buy insurance policies in just 90 seconds and file claims in under three minutes. The startup’s innovative approach recently attracted $1.5 million in pre-seed funding, led by Mobility 54, the venture arm of Toyota Tsusho and CFAO Group. Other participants included Tangerine Insurance (Etap’s underwriter), Graph Ventures, Newmont, and several angel investors.
“Our goal is to offer the most preferred insurance products and scale across Africa. With the partners we’ve secured, I believe we’re in the perfect position to achieve that,” said Ibraheem Babalola, Etap’s founder and CEO.
From Frustration to Innovation
Babalola, inspired by his personal frustrations with traditional insurance processes, sought to create a seamless, user-friendly solution. “The idea stemmed from being a frustrated customer. My insurance would expire without notice, forcing me to manually renew it through an agent. I knew there had to be a better way,” he explained.
Etap’s app now offers users automated renewal reminders and even the option to set up auto-renewals. The platform also allows customers to customize their insurance plans, choosing coverage per trip, daily, monthly, or annually, depending on their needs.
Gamifying Insurance and Tailoring Premiums
Etap’s app rewards good driving behavior with points that customers can redeem for discounts or other benefits. Premiums are also adjusted based on driving habits, leveraging data to classify users into appropriate risk categories. These features make insurance not only accessible but also engaging and tailored to individual drivers.The platform’s end-to-end services include pre-insurance inspections and post-accident evaluations, all powered by image-based technology. Fraud prevention tools such as geolocation tags and timestamps ensure transparency and trust in the claims process.
Expanding Across Africa
With its recent funding, Etap plans to scale operations within Nigeria and expand to other parts of Africa. The startup’s goal is to address the low insurance penetration rates across the continent, which, despite high-risk environments, remain under 2%.“Nigeria and much of Africa face high-risk conditions, yet insurance penetration remains shockingly low. This gap represents an immense opportunity to reimagine how insurance is offered and accessed,” said Babalola.
Backed by Strategic Partners
Etap’s lead investor, Mobility 54, emphasized the significance of the startup’s mission. “Etap is solving critical challenges in the automotive sector in Africa. We are thrilled to support their innovation and believe they will revolutionize the insurance industry across the continent,” said Yumi Takagi, Mobility 54’s project manager.
Etap’s approach to insurance—blending technology, flexibility, and gamification—marks a significant shift in how motor insurance is perceived and utilized in Nigeria. With the backing of strategic investors, the startup is well-positioned to drive change, not only in its home market but also across Africa, setting a new standard for accessible and transparent insurance solutions.
