Conventional Insurance Firms can transact Microinsurance business – NAICOM

In a bid to support financial inclusion and increase insurance penetration in the country, the National Insurance Commission (NAICOM) has announced its resolve to grant Microinsurance window operations to conventional insurance companies.

NAICOM in a circular dated 30th November, 2020, with Ref: NAICOM/DPR/ CIR/32/2020, signed by the Director, Policy and Regulation, Mr Leo Aka on behalf of the Commission and addressed to all insurance institutions, said “Henceforth, in order for a window operation to be granted to a Conventional Insurance Company, the following requirements shall be met; The Insurer shall seek and obtain approval of the Commission to transact Microinsurance Business; Board Resolution approving the establishment of a Microinsurance Department .
Applicant shall apply for Window Microinsurance National Operation License.

“The Department shall be headed by an experienced insurance officer not below the rank of an AGM, who must posses a minimum of seven years post Associate of Chartered Insurance Institute of Nigeria qualification or a minimum of 10 years working experience in a technical department of an insurance institution.

Any Window operator shall segregate the financial records of its Microinsurance business from that of the conventional business. Appropriate Reinsurance arrangement shall be put in place”, the Circular stated.

The  directive, according to NAICOM takes  effect from Tuesday, December 1st, 2020.