NAICOM unveils operational guidelines for insurance web aggregators

The National Insurance Commission (NAICOM) has released operational guidelines to serve as a working documents to register, supervise and monitor web aggregators.

Who is a web aggregator? A web aggregator means a company registered under the Companies and Allied Matters Act No 1 of 1991 “CAMA” approved by NAICOM under this guideline, which maintains/owns a website and owns information pertaining to insurance products and price/features comparisons of products of different insurers and offers leads to an insurer.

NAICOM by the powers conferred on it by the provisions of Section 49(1B) of NAICOM Act 1991, hereby issues the following guidelines on licensing and operation of Web Aggregators.

Therefore, this guidelines comes into effect on the date of release to the insurance industry.

Also, the guidelines shall apply to all Web Aggregators and insurers respectively carrying on insurance business in Nigeria.

Besides, this guidelines shall be read in conjunction with other relevant legislation, guidelines and circulars as determined to be applicable to the nearly inclusive distribution channels approved by the Commission.

For instance, highlights of the guidelines include that the web aggregator is expected to have a minimum share capital not less than N5 million as at the date of application and shall continue to maintain same throughout the license period, and registration fee for license at N3 million.

Equally, intending investors shall pay N500,000 non-refundable application fee after which such investor will pay N2.5 million as licensing fees, and license renewal shall cost N1 million.