NAICOM grants operational approval to two new insurance firms

Motolani Oseni

The National Insurance Commission (NAICOM) has granted approval in principle (AIP) to Cornerstone Takaful Insurance Company Ltd and Salam Takaful Insurance Company Ltd.

This was contained in a statement issued by the Head, Corporate Affairs of the Commission, Rasaaq Salami, stating that the companies will operate as composite Takaful operators to transact both family and general Takaful businesses in Nigeria.

Takaful is a type of Islamic insurance wherein members contribute money into a pool system to guarantee each other against loss or damage.

Takaful-branded insurance is based on sharia or Islamic religious law, which explains how individuals are responsible to cooperate and protect one another.

With the new approvals, this brings the total number of wholly Takaful operators to four. The NAICOM had in 2016 granted a licence to Noor Takaful and Jaiz Takaful respectively.

NAICOM said the AIP to the two new companies are in line with the Commission’s drive for inclusion towards increasing insurance penetration in the country.

It noted that “a final operating licence will be issued to the companies upon provision of evidence of a Conducive business environment at their head offices; An appropriate IT infrastructure and appointment of a head of IT; Appointment of key personnel and submission of the first set of products for Commission’s approval.”

It added that the Commission is currently processing more applications for possible approvals.