Two microinsurance companies has commenced operation, having secured regulatory approval to do so, in a bid to insure about 80 million low income earners in the country, LEADERSHIP can now reveal.
The two microinsurers, namely; Goxi and Casava, who have their operations restricted to Lagos State due to the nature of their license, becomes the pioneer microinsurance outfits in the insurance sector of the economy.
Last week, the National Insurance Commission(NAICOM) had granted approval to Casava Micro-insurance Limited to operate as State Composite Micro Insurance company transacting Life and General Micro Insurance Business in Lagos State only.
A statement by the Head, Commissioner’s Directorate, NAICOM, Mr. Salami Rasaaq, said Casava Micro-Insurance is one of the successful company among several applications received in the Commission from Individuals and corporate entities requesting registration as Micro-insurance operators in Nigeria.
He noted that the company thus become the second full-fledge standalone Micro lnsuranœ operator in Nigeria.
The commission said the licensing is in its continuous effort at deepening insurance penetration and increasing insurance access point in the country.
Prior to this new regulatory approval, NAICOM had earlier granted Microinsurance licence to Goxi Microinsurance Company, thus, becoming the pioneer standalone microinsurer in the country.
Goxi Microinsurance outfit is also expected to only operate in Lagos State, having being granted State Composite license. The composite Microinsurance license allows the firm to transact Life and General Micro insurance Business within its domicile State.
To this end, the country can now boast of two licensed Microinsurers, who are to deepen insurance penetration in the grassroots.
Last year, NAICOM had lowered the capital base of microinsurance outfits to make it easier for many investors to come in.
The revised guideline also classified Microinsurance operation into Unit, State and National License.
For a National Insurer, such composite microinsurance operator is expected to be capitalised to the tune of N600 million, while N400 million minimum capital base is needed from a General microinsurance operators and N200 million for a Life microinsurer. According to the guideline, national operators are allowed to have presence in at least six states within the three geopolitical zones of the federation.
For a State Microinsurer, the minimum capital base is pegged at NI00 million, while a Unit Microinsurer investor must be capitalised to the tune of N40 million, with operation in one location within a local community.
The regulator has therefore made it mandatory for these microinsurance outfits to make themselves visible and must be seen to be serving the low income earners grassroots.
To this end, the commission had warned these outfit to stick to their civic responsibilities, while failure would lead to appropriate sanction.
Microinsurance is an insurance developed for low income populations, low valued policies, micro and small scale enterprises provided by licensed institutions, run in accordance with generally accepted insurance principles, and funded by premiums.
Microinsurance products are insurance products that are designed to be appropriate for the low income market, low valued policies, micro and small scale enterprises in relation to cost, terms, coverage, and delivery mechanism.
Leave a Reply