IslamicFinance.de

Operators seeking the licence to underwrite Takaful Insurance have continued to turn in their applications to the National Insurance Commission (NAICOM). Since the process is still ongoing, the number of applications is still not known. Interests have been received from underwriters and the general public. NAICOM will through the licensing demystify insurance practice, making it possible for operators to operate at the grassroots. Ibrahim Hassan, deputy commissioner for Insurance (Technical) NAICOM, said the interested companies must maintain a minimum deposit in a non-interest financial institution at all times and that the provision for the establishment of an Advisory Council of Experts (ACE) must be made in the articles of the Company and there should be establishment of investment policy for the participants’ Risk Fund.

Fola Daniel, head of the National Insurance Commission (NIC), said the Nigerian insurance market has the capacity to become the biggest in Africa and one of the largest globally. However, a recent study shows that penetration rates of products and services offered by insurance companies are low. In order to achieve a higher coverage, the acceptance of insurance among the wider public needs to be increased. The rising purchasing power of many Nigerians may allow the industry to deepen its penetration and lift earnings.