Matching capital with ‘space’ in unlocking Nigeria’s microinsurance potential
Wednesday, March 5, 2014
As Nigeria prepares to unlock its microinsurance potential given the country’s huge population of 170 million people and a demographic structure leaning towards the mass poor, the need to open up the sector for mass participation of several service providers has been advocated.
Consequently, achieving this will require streamlining the minimum capital requirement (MCR) to accommodate both big and small players for different levels of participation in the entire microinsurance value chain.
Though the insurance regulator, the National Insurance Commission (NAICOM), had requested a minimum capital requirement of N350m for microinsurance license in its guideline released December 2013, analysts say this is on the high side and has not attracted the class of operators that have interest in that area of business.