Plans are being drawn up to increase the capital of microinsurance and takaful companies in the country, as part of efforts to increase insurance penetration.
Takaful and microinsurance companies are currently operating with the same capital base prescribed for them in legal frameworks in 2013. The base appears inadequate now, considering inflation, forex volatility, among other economic parameters, reported the publication Leadership.
The National Insurance Commission (NAICOM) is currently reviewing the microinsurance and takaful guidelines and is planning to engage stakeholders before revised guidelines are released.
The insurance commissioner, Mr Sunday Thomas, earlier said that the amount of capital required for microinsurance underwriting with respect to some of the sectors appeared looking unrealistic and that NAICOM might have to step in.
There are four microinsurance companies and five takaful operators in Nigeria at present.