The Nigerian
insurance industry primary regulator, the National Insurance Commission (NAICOM) has pegged Web Agregator’s license fee at N3 million, while intending investor is to pay N500,000 non-refundable application fee, after which such investor will pay N2.5 million as licensing fees, even as license renewal will cost N1million.

This is part of the Web Aggregators operational guidelines just released by NAICOM.

According to the regulator, “This Operational Guidelines shall serve as a working document to register, supervise and monitor web aggregators as Insurance Intermediary who maintain a website for providing information on products of different Insurers.”

NAICOM says this guidelines release is in exercise of the powers conferred by the National Insurance Commission Act 1997 and that the Guidelines come into effect on the date of release to the insurance industry and the public, adding that the Guidelines shall apply to all Web Aggregators and Insurers respectively carrying on insurance business in Nigeria.

The guidelines said that approval and/or No Objection are required in two phases/stages as follows: Application for issuance of No Objection by NAICOM to Insurance Operators (Insurers/Brokers) and Application for issuance of License to Web Aggregator by NAICOM.

On application for issuance of No Objection by NAICOM, “any Insurer who intends to carry on a Web based Insurance business shall make an application to the Commission in the prescribed manner in line with NAICOM’s Guidelines on Web Aggregator’s model of business. An applicant having satisfied the requirements set out under Extant Laws and the Guidelines, the Commission will grant No Objection with such conditions as it may deem fit.

“These Guidelines shall be read in conjunction with other relevant Legislation, Guidelines and Circulars as determined to be applicable to the newly inclusive distribution channels approved by the Commission”

It is the responsibility of Web Aggregators, according to the guideline, to obtain any clarification required on the applicability of the Guidelines, and any other Regulations from the Commission.”

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, even as they are required to submit to the commission, a financial position duly certified by an External Auditor every year after finalization of books of Accounts.

The guideline stated that Insurance levy payable by Web Aggregator shall be one per cent of the gross commission income or minimum of N200, 000, whichever is higher, that the commission to be paid by the insurer partner to Web Aggregator shall not exceed 30% of the brokers commission as stated in Section 53 of the Insurance Act, 2003.

“A Web Aggregators shall put in place a robust LMS and transmit leads at no extra cost to the insurers. The insurer shall keep adequate records of commission paid to a Web Aggregator,” it pointed out.

NAICOM In the guideline explained that payment of premium under web Aggregation operation shall be guided by Section 50(1) of the Insurance Act 2003 which provides for receipt of an insurance premium as condition precedent to a valid contract of insurance and highlighted further that there shall be no cover in respect of an insurance risk, unless the premium is paid in advance i.e. ‘No premium, No cover.’

The commission in the guideline said that insurance intermediary who maintain a website for providing information on products of different Insurers is covered by this guideline.

It stated that it is the responsibility of Web Aggregators to obtain any clarification required on the applicability of these Guidelines, and any other Regulations from the commission.

NON-REFUNDABLE FEE, N2.5 MILLION LICENSING FEES
L pegged Web Agregator’s license fee at N3 million, while intending investor is to pay N500,000 non-refundable application fee, after which such investor will pay N2.5 million as licensing fees, even as license renewal will cost N1million.

This is part of the Web Aggregators operational guidelines just released by NAICOM.

According to the regulator, “This Operational Guidelines shall serve as a working document to register, supervise and monitor web aggregators as Insurance Intermediary who maintain a website for providing information on products of different Insurers.”

NAICOM says this guidelines release is in exercise of the powers conferred by the National Insurance Commission Act 1997 and that the Guidelines come into effect on the date of release to the insurance industry and the public, adding that the Guidelines shall apply to all Web Aggregators and Insurers respectively carrying on insurance business in Nigeria.

The guidelines said that approval and/or No Objection are required in two phases/stages as follows: Application for issuance of No Objection by NAICOM to Insurance Operators (Insurers/Brokers) and Application for issuance of License to Web Aggregator by NAICOM.

On application for issuance of No Objection by NAICOM, “any Insurer who intends to carry on a Web based Insurance business shall make an application to the Commission in the prescribed manner in line with NAICOM’s Guidelines on Web Aggregator’s model of business. An applicant having satisfied the requirements set out under Extant Laws and the Guidelines, the Commission will grant No Objection with such conditions as it may deem fit.

“These Guidelines shall be read in conjunction with other relevant Legislation, Guidelines and Circulars as determined to be applicable to the newly inclusive distribution channels approved by the Commission”

It is the responsibility of Web Aggregators, according to the guideline, to obtain any clarification required on the applicability of the Guidelines, and any other Regulations from the Commission.”

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, even as they are required to submit to the commission, a financial position duly certified by an External Auditor every year after finalization of books of Accounts.

The guideline stated that Insurance levy payable by Web Aggregator shall be one per cent of the gross commission income or minimum of N200, 000, whichever is higher, that the commission to be paid by the insurer partner to Web Aggregator shall not exceed 30% of the brokers commission as stated in Section 53 of the Insurance Act, 2003.

“A Web Aggregators shall put in place a robust LMS and transmit leads at no extra cost to the insurers. The insurer shall keep adequate records of commission paid to a Web Aggregator,” it pointed out.

NAICOM In the guideline explained that payment of premium under web Aggregation operation shall be guided by Section 50(1) of the Insurance Act 2003 which provides for receipt of an insurance premium as condition precedent to a valid contract of insurance and highlighted further that there shall be no cover in respect of an insurance risk, unless the premium is paid in advance i.e. ‘No premium, No cover.’

The commission in the guideline said that insurance intermediary who maintain a website for providing information on products of different Insurers is covered by this guideline.

It stated that it is the responsibility of Web Aggregators to obtain any clarification required on the applicability of these Guidelines, and any other Regulations from the commission.