Nigeria: Capital hike underway for microinsurers and takaful operators

Source: Middle East Insurance Review | Nov 2020

Plans are underway to increase the capital base of microinsurance firms and takaful operators in Nigeria, according to local daily Leadership.

The National Insurance Commission (NAICOM) is currently reviewing the guidelines and is planning to engage stakeholders before releasing the revised guidelines to the public.

Currently, the capital base for a national insurer that seeks a composite microinsurance licence is capped at NGN600m ($1.6m), while the minimum capital required for a general microinsurer is NGN400m. The minimum capital requirement for life operations is NGN200m, said the report. The minimum capital requirement for a state microinsurer is NGN100m – broken into N60m for general and N40m for life operators.

According to findings by the newspaper, composite microinsurance firms may have their capital increased to over NGN1bn, while general microinsurance firms could be capitalised to the tune of NGN800m or more.

Currently there are four microinsurance companies and five takaful operators in Nigeria. M

NGN10=$0.03

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