NAICOM sets new fees for application, registration of insurance business

Sunday Thomas

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Chuks Udo Okonta

Individuals seeking to venture into insurance; reinsurance; broking; loss adjusting and agent operations, are now to pay more as the National Insurance Commission (NAICOM) has increased the application and registration/licensing fees for the businesses.

The new fees were stated in the recently released Revised Market Conduct and Business Guidelines for Insurance and Reinsurance Companies by NAICOM.

According to NAICOM, application fee which is non-refundable for reinsurance operation is now N10 million as against N5 million paid in the past; Life business, N10 million, from N5 million; general business, N10 million, from N5 million; broker, N500,000 from N250,000; Loss Adjuster, N300,000 from N75,000 and agent N5,000.

On registration/licensing fee, NAICOM placed reinsurance on one per cent of paid-up share capital. Same applied to life and general business, while broker, N3.5 million from N2.5 million and loss adjuster, N500,000.

The insurance industry regulator stated that a broker seeking registration has to pay N500,000 fee, while renewal fees were pegged at N300,000 for brokers, N200,000 for loss adjusters and N3,000 for agents.

NAiCOM stated that change of name for reinsurance and insurance is now N100,000; brokers, N50,000 and loss adjusters, N30,000.

It said change of ownership (acquiring majority share) fee is put at one per cent of the acquisition amount for reinsurance and insurance.

NAiCOM submitted that certificate fee per year for audited account is N50,000, while certificate of operation for insurance and brokers is N50,000.

The Commissioner for Insurance, Sunday Thomas, has said NAICOM would continue to grant operating licence to insurance and reinsurance firms that show and have capacity to impact the underwriting sector.

He noted that the commission would continue to encourage the development of the insurance sector by ensuring that capable players are welcomed into the sector.

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