ETAP, a Nigerian insurtech startup that raised $1.5 million in pre-seed funding in 2022, has successfully expanded its operations into Ghana after obtaining an operational license from the country’s National Insurance Commission (NIC). The expansion into Ghana is facilitated through a strategic partnership with Hollard Insurance Ghana, one of the country’s leading insurance firms. Under this partnership, Hollard Insurance will handle the underwriting of insurance policies, while ETAP will provide the technological platform and manage the operational aspects.
We have partnered with Hollard because of their deep understanding of the market.
Ibraheem Babalola, CEO of ETAP
ETAP, which launched in 2022, offers a streamlined process for purchasing car insurance, allowing users to buy coverage in just 90 seconds and file claims in three minutes. The company provides instant claim processing, customizable coverage options, and a rewards system that incentivizes safe driving behavior. Additionally, ETAP offers flexible payment options, enabling drivers to pay for insurance per trip, daily, monthly, or yearly, according to their needs.
Currently operating in 12 Nigerian states, ETAP anticipates that the Ghanaian market will significantly contribute to its revenue streams. The company claims to have processed nearly ₦20 billion in sum assured across its comprehensive and third-party insurance policies.
While Nigeria represents a larger market, Babalola believes that Ghana offers greater business potential due to its higher insurance penetration rate. In Ghana, one in three cars is insured, compared to only one in five registered vehicles 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,” Babalola stated.
In Ghana, ETAP will face competition from other insurtech companies like Octamile and Redpear, as well as traditional insurance firms. The Motor Vehicle Insurance market in Ghana is projected to reach a market volume of $0.66 billion by 2029. Looking ahead, ETAP also plans to expand into Cote d’Ivoire as part of its strategy to penetrate the Francophone region.
