ETAP, an organization that creates solutions and incentives to improve the automotive experience across Africa, noted in a press release that its new product is designed to give back to policyholders and their communities.
According to the firm, unlike conventional insurance policies where all premiums are collected by insurers and later distributed among policyholders only in case of a payout, ETAP Takaful was designed so that funds would be redistributed annually amongst policyholders according their need at no additional cost, ETAP will collate all the remaining funds after claims and associated costs have been deducted and redistributed to policyholders, or to their chosen nonprofit cause.
This can include nonprofit organizations working toward ending homelessness; educational programs for the bottom of the pyramid, healthcare initiatives and human rights advocacy.
Policyholders may choose to receive payment of their surplus as a cashback or discount on subsequent renewals.
Ibraheem Babalola, CEO of ETAP, says that the takaful insurance market will reach $97.17 billion by 2030 and that his company is "the first African insurtech to enable this option on the continent".
