NAICOM approves GOXI as State Composite Microinsurance Company
The National Insurance Commission (NAICOM) has granted approval for GOXI Micro Insurance Company Limited to operate as a state Composite Microinsurance Company.
In a press statement today signed by Salami Rasaaq, Director, Commissioner’s Directorate, said the approval for the new microinsurance company is part of the Commission’s drive to ensure insurance market development through enhanced access points for insurance services in Nigeria.
“In its drive to ensure insurance market development through enhanced access points for insurance services in Nigeria, the National Insurance Commission (NAICOM) has granted approval to GOXI Microinsurance Company Limited, to operate as a State Composite Microinsurance Company transacting Life and General Micro Insurance Businesses,” the statement stated.
NAICOM said in the statement that the approval for GOXI Microinsurance Company Limited is one of several applications the Commission has received from individuals and corporate entities requesting approval for registration as Micro Insurance operators.
GOXI Microinsurance Company Limited, the statement stated, thus become the first full fledged stand alone Micro Insurance Operator in Nigeria.
Speaking on the development, Deputy Commissioner for Insurance (Technical), NAICOM, Sunday Thomas, said GOXI Micro Insurance will operate in Lagos State only, adding that before the end of this month the number of stand alone micro insurance will increase to two as, according to him the process for approval of the second one has reached advanced stage.
The Micro insurance guidelines issued by NAICOM in January 2018 stated: that for National Microinsurers, a minimum capital base of N600 million will be required, while the general business will have N400 million, the life business will have N200 million.
“Its operation is nationwide with presence in at least six states within three geopolitical zones of the federation. The company shall prove to the Commission through their business plan that they are going to access the low income earners spread across the country within a reasonable time frame,” NAICOM stated.
Unit Microinsurance minimum capital
According to the guideline, a Unit Microinsurer must have minimum capital base of N40 million, hence while the general business arm will operate with N25 million, the life arm will operate with N15 million. “It is to operate only in any one location within a local community and the company shall prove to the Commission through their business plan that they are going to access the low income earners spread across the location within a reasonable time frame.
“The Commission shall grant a state microinsurer licence to a unit microinsurer upon application following 36 months of successful business operation and approval by the Commission,” NAICOM said.
