Insurance

NAICOM gives firms 18 months grace to get fresh microinsurance licence

From left: Deputy Commissioner Technical, National Insurance Commission, Sunday Thomas; Chairman, National Association of Insurance and Pension Correspondents, Mrs Omobola Tolu-Kusimo; Deputy Commissioner (Finance & Administration), George Oneknena and Director, Finance and Accounts, Oba Olufemi at the event.

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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has told the 17 insurance firms 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 a 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.

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.”

From left: Director Supervision Barineka Thompson; Deputy Commissioner (Finance & Administration), George Oneknena; Deputy Commissioner Technical, National Insurance Commission, Sunday Thomas; Director, Finance and Accounts, Oba Olufemi and Director, Research, Statistics and Corporate Strategy, Dr. Habila Amosat the event.

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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