Two new Takaful Insurance companies will soon begin operation in the insurance sector of the nation’s economy, after the National Insurance Commission (NAICOM) has granted Approval In Principle (AIP) to the duo.
The two new Islamic insurers Cornerstone Takaful Insurance Company Limited and Salam Takaful Insurance Company Limited were licensed as Composite Takaful operators to transact both family and general Takaful businesses in Nigeria.
This new development brings the total number of wholly Takaful operators to four, having earlier in 2016 granted licence to Noor Takaful and Jaiz Takaful respectively.
NAICOM said the AIP issued to the two new companies was in line with the Commission’s drive for inclusion towards increasing insurance penetration in the country.
A final operating licence, according to the regulatory body, would be issued to the companies upon provision of evidence of conducive business environment at their head offices, an appropriate IT infrastructure and appointment of a head of IT, appointment of key personnel and Submission of first set of products for the Commission’s approval. The Commission said it is currently processing more applications for possible approvals.
Takaful insurance guarantees profit sharing between the insurer and the policyholders, a trait that is absent in the conventional insurance business as the conventional insurer takes the whole profit made from its investment.