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NAICOM proposes N5m, N3m licensing fee for 2-tier insurance broking business - The Revealer
Insurance

NAICOM proposes N5m, N3m licensing fee for 2-tier insurance broking business

The National Insurance Commission (NAICOM) has proposed N5 million and N3 million licensing fees for insurance broking business in the country, as against the present fee of N2.5 million.

The insurance regulator in a draft guideline for the regulation of insurance broking business in Nigeria, issued in June 2018 to all insurance broking companies, stated that in the proposed regime, brokers would operate 2-tier mode – Corporate and Partnership.

NAICOM noted that investors seeking Corporate licence have to pay non refundable application fee of N500,000 and those for Partnership licence N300,000, adding that every insurance broker shall upon successful conclusion of the registration process but prior to issuance of a licence, pay a licensing fee of N4.5 million for Corporate and N2.7 million, which together with the application fee amounts to N5 million and N3 million respectively.

NAICOM posited that every insurance broker shall pay bi-annual licence renewal fees of N1 million for Corporate and N600,000 for Partnership, adding that Corporate brokers would maintain a professional indemnity cover of not less than N10 million, which is N100 million in the case of oil and gas insurance brokerage or 50 per centum of its annual brokerage income for the preceding year, whichever is the greater, whilst partnership operators will a professional indemnity cover of not less than N5 million, which is N50 million in case of oil and gas insurance brokerage or 50 per centum of its annual brokerage income for the preceding year, whichever is the greater.

Source: www.inspenonline.com

 

Edet Udoh

We are The Revealer, a general online news platform based in Nigeria. Our focus amongst others is to provide credible, factual, well researched and balanced news and articles for our teeming readers in business, governments, politics, engineering, science, religion, technology etc. Edet Udoh is the Managing Editor. He is an experienced media person. He has worked extensively with the Champion Newspapers, The Authority Newspapers and the Blueprint Newspaper before starting Revealer Online News platform in 2018. He can be reached with this email address: edetudoh2003@gmail.com or via these phone numbers 08061246427 and 08170080488

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