Conventional insurance companies have been allowed by the National Insurance Commission (NAICOM) to have microinsurance window operations since 1 December 2020.
This is part of the ongoing drive by the authorities to promote financial inclusion and increase insurance penetration in Nigeria.
NAICOM chief executive Mr Sunday Thomas said that the commission had developed and fine-tune the framework and guidelines for the operation of microinsurance and takaful to support micro and small and medium sized enterprises especially in times of economic shock.
In order to secure a licence for microinsurance window operations, a conventional insurance company has to meet the following requirements:
1. The Insurer shall seek and obtain approval of the Commission to transact microinsurance business.
2. A Board Resolution has to be passed approving the establishment of a Microinsurance Department.
3. Applicant shall apply for Window Microinsurance National Operation Licence.
4. The Microinsurance Department shall be headed by an experienced insurance officer not below the rank of an AGM, who must possess a minimum of 7 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.
5. A window operator shall segregate the financial records of its microinsurance business from that of the conventional business.
6. Appropriate reinsurance arrangement shall be put in place.