By Joseph Inokotong, Abuja
The National Insurance Commission (NAICOM) has granted conventional insurance companies permission to operate microinsurance business from December 1.
NAICOM in a circular dated November 30, with a number NAICOM/DPR/CIR/32/2020, signed by the Director, Policy and Regulation, Mr Leo Aka, said the directive took effect from yesterday, December 1st, 2020.
The Commission said some operational requirements for the business must be met by interested insurers.
According to NAICOM, the conventional Insurance companies that want venture into microinsurance business must comply with the following: “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 possess 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 exercise, NAICOM said is to enhance insurance penetration in the country.