BY COBHAM NSA, ABUJA – The National Insurance Commission (NAICOM) has given Approval in Principle (AIP) to two composite Takaful operators to transact both family and general Takaful businesses across Nigeria.
The two industry’s freshers are Cornerstone Takaful Insurance Company Ltd and Salam Takaful Insurance Company Ltd.
By this new development, the total number of wholly Takaful operators in the country has now risen to four (4).
NAICOM, as the sole regulatory agency of the nation’s insurance industry, had in 2016 granted operational licence to both Noor Takaful and Jaiz Takaful respectively.
According to a statement by NAICOM in Abuja, the AIP granted the two new companies is in line with its drive for inclusion towards increasing insurance penetration in the country.
The statement however said a final operating licence will be issued to both firms after they have provided evidence of the following:
A). Conducive business environment at their Head offices;
B). An appropriate IT infrastructure and appointment of a head of IT;
C). Appointment of key personnel; and
D). Submission of first set of products for Commission’s approval.
The statement also hinted that NAICOM is currently processing more applications for future approvals.
Takaful is a type of Islamic insurance where members contribute money into a pool system to guarantee each other against losses or damages.
Takaful-branded insurance is based on sharia or Islamic religious law, which explains how individuals are responsible to cooperate and protect one another.
The Takaful policies cover health, life, and general insurance needs among other areas