NAICOM approves Nigeria’s first full fledged micro insurance operator

The National Insurance Commission (NAICOM) has granted approval to GOXI Microinsuranoe Company Limited to operate as a state composite micro insurance company.

The approval gives the company authority to transact life and general micro insurance business in Lagos State only.

It also makes the company, Nigeria’s first full fledged stand alone micro insurance operator, according to a statement from NAICOM.

The commission explained that the approval was given to ensure insurance market development through enhanced access points for insurance services in Nigeria, in its statement signed by Salami Rasaaq, NAICOM’s communication director.

It said the application from the firm, is one of several applications received in the Commission from individuals and corporate entities requesting approval for registration as micro insurance operators.

Sources disclose that the number of state composite microinsurance company could increase to two by the end of February 2019 as application from another company has reached advanced stages.

According to the micro insurance guidelines issued by NAICOM in January 2019, unit micro insurers, must have minimum capital base of N40 million. The general business arm is expected to operate with N25 million, and the life arm will operate with N15 million.

“It is to operate only in any one location within a local community and the company shall prove to the Commission through their business plan that they are going to access the low income earners spread across the location within a reasonable time frame.

The Commission shall grant a state micro insurer licence to a unit micro insurer upon application following 36 months of successful business operation and approval by the Commission,” NAICOM had said.

However, National Microinsurers must have a minimum capital base of N600 million. The general business will have N400 million, while the life business will have N200 million.

The commission noted that to be qualified, the company shall prove to the Commission through their business plan that they are going to access the low income earners spread across the country within a reasonable time frame.