By Adedapo Adesanya
The National Insurance Commission (NAICOM) has given a go-ahead to all conventional insurance companies across the country to transact micro-insurance businesses to support financial inclusion and increase insurance penetration.
A circular released by the commission in Abuja yesterday said the authorisation takes effect from December 1, 2020.
The circular said that conventional insurance companies should henceforth apply for a micro-insurance national operation license before they would be allowed to operate the window.
According to the agency, “insurers shall seek and obtain approval from the commission before transacting micro insurance and the board of the company shall approve the establishment of a micro-insurance department.”
The circular, however, urged insurance companies to segregate the financial records of its micro-insurance dealings from other conventional businesses.
Recall that Business Post had reported that NAICOM issued its first licence in 35 years to a reinsurance company and also issued licences to four insurance companies and two takaful insurance companies for the first time in 10 years.
This initiative was to deepen the insurance market and expand operations in the country.
The companies were charged to focus on products that would meet the insurance needs of the people, adding that the commission would not hesitate to recall the licence of any company which failed in its responsibilities.
Due to the current poor rating of the country in insurance, the commission urged the companies to help get more people involved in the sector, especially at the micro-level.
Insurance companies that were issued licences included Stanbic IBTC Insurance Limited, Salam Takaful Insurance Company Limited, FBS Reinsurance Limited, Heirs Life Assurance Limited, Enterprise Life Assurance Company Nigeria Limited and Cornerstone Takaful Nigeria.
Dipo Olowookere