NAICOM Releases ‘Insurance Web Aggregators Operational Guidelines’ 2022

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The management of National Insurance Commission (NAICOM) has published “Insurance Web Aggregators Operational Guidelines” effective 1st February 2022 for all web aggregators and insurers to 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.

According to the Commission the registration for approval as a web aggregator goes through three stages detailing copy of no objection/approval by Nigerian Communications Commission (NCC) and six other listed requirements. Stage two lists organisational chart showing functional responsibilities, board resolution to commence a web aggregator operation and 12 other requirements including professional indemnity cover of not less N20 million.

Furthermore, the registration process, NAICOM stated there are three stages; stage one begins with physical verification of web aggregator head office address and IT infrastructure to be deployed, followed by payment of licence fee and the ultimate, issue of licence.

The guidelines also contained that insurance intermediary who maintain a website for providing information on products of different Insurers. This Guidelines comes into effect on the date of release to the insurance industry and the public;

Commission further stated that all insurance companies and web aggregators operating under any agreement of a business relation whether web aggregation business or otherwise shall comply with the provisions of this guideline within sixty (60) days of its coming into effect while cited the National Insurance Commission Act 1997, that empowered the Commission to issues: ‘Insurance Web Aggregators Operational Guidelines – 2022’.

The guidelines noted that Service Level Agreements (SLAs) stating that such ‘agreement’ with the insurer shall be filled with the Commission within 30 days for ratification and meeting all 16 requirements itemised.

On mode of operations the requirements is clear on professional indemnity which every web aggregator shall possess and continue to maintain a professional indemnity insurance cover with a minimum limit of liability of N20 million or 50% of its annual gross commission income (whichever is higher) throughout the validity period of the licence granted by the Commission.

This 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; and

This Guidelines shall apply to all Web Aggregators and Insurers respectively carrying on insurance business in Nigeria;

The guidelines contained that it is the responsibility of Web Aggregators to obtain any clarification required on the applicability of this Guidelines, and any other Regulations from the Commission.


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