NAICOM to grant qualified web aggregators operational licence

The National Insurance Commission (NAICOM) has pegged the minimum share capital of web aggregators at N5 million and a registration fee at N3 million.

The web aggregators will in months, receive operational licences.

A web aggregator is an insurance intermediary or an insurance company that provides a comparison of insurance products and also the prices of different classes of insurance products to consumers.

The Commission’s Head, Corporate Communications and Market Development, ‘Rasaaq ‘Salami, said NAICOM has received as many applications, which are being looked into by the licensing department to come up with those that meet the set requirements as contained in the guideline.

Having an insurance web aggregator licence would not permit a web aggregator to provide ranking and comparison of different insurance providers and their products.

Web aggregators can display only insurance products. Solicitation of policies is also allowed by web aggregators. Solicitation is done through an online portal where information would be directly provided to the customer.

According to NAICOM, a 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 the same throughout the licence period. They shall submit to the commission, a financial position duly certified by an external auditor every year after finalisation of books of accounts.

An intending investor is to pay N500,000 non-refundable application fee after which such investor will pay N2.5 million as licensing fees while licence renewal will cost N1 million.