The National Insurance Commission, has spread the drag net to reach the excluded Nigerians as part of the ongoing pursuit to support financial inclusion and increase insurance penetration in Nigeria, with special focus on the informal sector beginning from today, 1 December 2020.
In a circular permitting conventional companies to create microinsurance window and commence operation, the Commission outlined several requirements to be met before approval is granted.
The new circular on microinsurance window operations for insurance companies in Nigeria, by Mr. Leo Akah, director (policy and regulation), said the process begins with the switch turned on when interested companies demand and obtain approval of the Commission to transact microinsurance business. Besides, a board resolution approving the establishment of the department shall also reach the regulator.
The Commission circular stated that aside applying for window microinsurance national operation licence, the department shall be headed by no less than an AGM who must possess a minimum of 7 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 institute.
To avoid ambiguity and cultivate financial clearness, the Commission said any window operator shall segregate the financial records of its microinsurance business from that of the conventional business. It is also required that appropriate reinsurance arrangement shall be put in place.
This new move will douse the heat generated by flag raised by NAICOM which required companies that were already offering microinsurance products but had to wind down operations if they do not obtain a separate licence sorely for that business, as a stand alone separate company. The new window to begin again, will rejuvenate operations for companies ready to comply with the stated requirements.