Insurance regulator, the National Insurance Commission (NAICOM) has granted conventional insurance companies Microinsurance Operations Window in the effort to deepen penetration.
According to the Commission, this is part of the ongoing pursuit to support financial inclusion and increase insurance penetration in Nigeria.
“The Commission hereby permits micro insurance window operations for conventional insurance companies, and this will be effective from December 1, 2020, NAICOM said.
This was contained in a circular issued by the Commission on Tuesday 1st December 2020 to all insurance companies with the theme ‘Circular on Microinsurance Window Operations for Insurance Companies in Nigeria’ signed by Leonard Akah, director, Policy and Regulation on behalf of the Commissioner for Insurance.
Read Also: NHIS unveils new insurance scheme for Nigerians
According to NAICOM, the requirement shall be to obtain approval of the commission to transact microinsurance business; board resolution approving the establishment of a microinsurance department; application shall be for National Microinsurance License; the Department shall be headed by an experienced insurance officer not below the rank of am AGM, who must possess a minimum of seven years post associate of the Chartered Insurance Institute of Nigeria qualification or a minimum of 10 years working experience in a technical department of an insurance institution.
Other requirements include that any window operators shall segregate the financial records of its micro business from that of the conventional business, while reinsurance arrangements shall be put in place.
