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 country’s National Insurance Commission (NIC).
ETAP is expanding into Ghana through a joint partnership with Ghana’s leading insurance firm, Hollard Insurance Ghana. The partnership will allow Hollard Insurance to underwrite the insurance while ETAP will provide the tech platform and run the operations.
“We have partnered with Hollard because of their deep understanding of the market,” Ibraheem Babalola, ETAP CEO told TechCabal.
Launched in 2022, ETAP claims it allows users to buy car insurance in 90 seconds and file claims in three minutes. The company offers instant claim processing, customizable coverage options, and a rewards system that incentivises safe driving behavior. The insurtech also allows drivers to pay for insurance according to their needs, per trip, daily, monthly, or yearly.
The business which is currently present in 12 Nigerian states expects the Ghanaian market to contribute significantly to its revenue streams. ETAP claims it has processed nearly ₦20 billion sum assured across its comprehensive and third-party insurance policies.
While Nigeria presents a larger market, Babalola believes Ghana offers more business potential due to its higher insurance penetration rate. One in three cars is insured in Ghana, while only one of five registered vehicles is insured in Nigeria.
“Nigeria has one of the highest risk environments in the world. It is less stressful to do business in Ghana. Ghana is less chaotic,” he said.
The company will compete with Octamile & Redpear in Ghana and other traditional insurance companies. The Motor Vehicle Insurance market in Ghana is projected to reach a market volume of $0.66 billion in 2029.
The business also plans to launch in Cote d’Ivoire to make inroads into the Francophone region.
