NAICOM pegs microinsurance paid-up share capital at N150m, N200m

From: Director Finance and Accounts National Insurance Commission (NAICOM) Oba Olufemi; Commissioner for Insurance Fola Daniel; Director Supervision, Nicholas Opara and Deputy Director Authorization and Policy, Akah Leo at seminar for insurance correspondents in Ilorin Kwara State.

 

 Chuks Udo Okonta

 

             The National Insurance Commission has pegged the paid-up capital for Life Microinsurance business and N150, 000,000 and General Micro-insurance business for N200, 000,000, Inspen has learnt.

 

               Deputy Director Authorization and Policy NAICOM, Akah Leo, disclosed this today Friday at seminar organised by the commission for insurance correspondents in Ilorin Kwara State.

               He noted that Specialised microinsurers shall maintain with Central Bank of Nigeria (CBN) at all times a statutory deposit of 10 per cent of the minimum paid-up capital requirement, adding that a microinsurance operator shall maintain adequate and valid reinsurance arrangement.

              

               He said a microinsurer carrying on general insurance business may offer general and life microinsurance products and vice-versa; provided there is an arrangement between the General and Life microinsurers.

 

              Leo said whereby the life portion of the business is transferred to the Life microinsurer and vice versa, it shall be the responsibility of the general microinsurer to settle the claims and subsequently recover the portion of the claims due from the life microinsurer.

            

               He noted that all microinsurers shall comply with the “Guidelines for Developing a Risk Management Framework for Insurers and Reinsurers in Nigeria” issued by the Commission.

              

              He said a microinsurer shall, in respect of its insurance business in Nigeria, maintain at all times a 50 per cent liquidity margin being the excess of the value of its admissible current assets in Nigeria over its current liabilities in Nigeria.

 

              Commissioner for insurance Fola Daniel, said the commission in the next one year would intensively promote microinsurance and takaful to enable people at the grassroots embrace insurance practice.