The National Insurance Commission (NAICOM) has announced its decision to permit Microinsurance window operations for conventional insurance companies in Nigeria with effect from Dec. 1.
NAICOM’s decision in contained in a circular to all insurance institutions in Nigeria, with number NAICOM/DPR/CIR/32/2020 dated Nov. 30, 2020 and signed by Mr Leo Aka, Director, Policy and Regulation, on behalf of the Commissioner.
The commission said that the move was part of the ongoing pursuit to support financial inclusion and increase insurance penetration in the country.
NAICOM said that a conventional insurance company must meet some requirements before being granted a window operation.
“The insurer shall seek and obtain approval of the commission to transact Microinsurance Business, and its board must approve the establishment of a Microinsurance Department.
“Applicants shall apply for Window Microinsurance National Operation License and the department shall be headed by an experienced insurance officer not below the rank of an AGM.
“The officer 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, ” it said.
According to NAICOM, any window operator shall segregate the financial records of its microinsurance business from that of the conventional business and put in place appropriate Reinsurance arrangement.
