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Chuks Udo Okonta
The National Insurance Commission (NAICOM) said it would leverage the planned staggered licence for microinsurance and takaful operations, to provide opportunities for dogged insurance professionals to set-up their underwriting firms, Inspen can report.
The Commissioner for Insurance Mohammed Kari, said the planned business model would help absolve professionals who desire to run their businesses but lacked the financial capability.
“This is an area where professionals that are in the wrong side of the business can move into, because we have so many professionals that are operating businesses, without realising the implications. But they can use their professionalism now and have this single digit unit or two to three units at the local government and run them more successful and have better cash flow than what they are doing now. We believe the microinsurance and takaful sectors can take a lot of professionals, because even before one operates there he must have certain level of professionalism,” he said.
He noted that the commission is presently look at how to make microinsurance and takaful models attractive and affordable for professionals to fit in.
“What we are trying to do for the special classes, is to see if we can stagger the licence, this is because what our law provides for now, is just a licence, which by implication is just a national licence or a licence that gives operators access to operate anywhere. And with paid up capital of N200 million, most operators may not be able to operate in more than two units.
“We are encouraging investors to come and get smaller type of licence that would enable them operate in small areas. We hope to bring down the licence fee and issue people licences to operate either on national, state or as a unit. An operator could be issued a licence to operate within a market that would enable the operator to be closed to the consumers. We are looking at this as a way to increase participation and deepen the market,” he posited.