Effect of fresh licence on operations of Microinsurance companies

The National Insurance Commission (NAICOM) has called on the 17 insurance companies that are already selling microinsurance products through the window operations to acquire fresh licence within a period of 18 months.

The ultimatum was issued in the revised microinsurance guideline and reaffirmed by the Commissioner for Insurance, Mohammed Kari, at a seminar organised by NAICOM for Insurance Journalists in Benin City, Edo State.

Kari, who was represented by Deputy Commissioner Technical, National Insurance Commission, Sunday Thomas, at the event, noted that, in case any of the concerned insurance firms failed to acquire fresh license, those with non-life Microinsurance products should wind up their operations, within 18 months while those with life classes should not later than 24 months transfer the life classes to dedicated Microinsurance company within this period.

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NAICOM, in section 10, sub section 1 and 2 of the revised Microinsurance guidelines released recently to the public said:”Existing Conventional microinsurers shall wind down their window operations for non-life classes within 18 months from the effective date of this Guidelines and in not later than 24 months transfer the life classes to a dedicated microinsurance company.”

It added that, ‘no policy shall be renewed nor new one issued with an expiry date beyond the date stated above.’By this directive, non-life conventional insurers operating Microinsurance as a window operation are given till June 2018 to wind up this operation while the life operators has December 2018’as the deadline to do same.

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Meanwhile, in a bid to deepen insurance penetration in the country, the commission said it would be leveraging Governors’ Forum to enforce the compulsory insurance policies in the 36 states of the federation.Kari, revealed this at a seminar with the theme: “Expanding the frontiers for insurance market development and penetration in Nigeria: The NAICOM initiatives” held in Benin City, Edo state.

The Commissioner, who was represented by the Deputy Commissioner’ Technical, Sunday Thomas, said in 2018 the commission would be looking at penetration to grow the second phase of the MDRI.

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He said: “There are ample opportunities for us to deepen the market and sustain all that we have been able to achieve in the past years.
We are getting into second phase of MDRI.
He added that “between 2009 till now we have created serveral awareness. This year we are commencing the second phase and we have set plans on motion to ensure successful implementation of the second phase of MDRI,” he assured.

 

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