The National Insurance Commission (NAICOM) has issued three (3) regulatory guidelines to operators in a bid to ensure professionalism in the conduct of businesses in the Insurance sector.

The guidelines which are to guide the transaction of businesses in line with best practices, according to the Head, Corporate Communication and Market Development, ‘Rasaaq ‘Salami, includes Insurance Regulatory Sandbox Operational Guidelines; Market Conduct Guidelines for Takaful and Retakaful Insurance Operators andEnterprise Risk Management Framework for Takaful and Retakaful Operators in Nigeria.

The Commission expects all Operators to ensure compliance with the new guidelines to the benefit of all stakeholders. Attached are the various guidelines for your necessary action.

Some of the objectives in the guidelines includes to provide insurance institutions, other firms and persons the opportunity to test business models, products and services that will enhance efficiency in meeting consumers’ needs;
to encourage innovation that will drive financial inclusion and positive competition, and to promote and deliver economic benefits, by lowering the cost of business operations.

According to the guidelines on the sandbox particularly as it affects the revocation of approval and withdrawal of the participant indicates that the approval granted to participate in the sandbox may be revoked by the Commission at
any time before the end of the testing period if:
(i). The participant has failed to comply with the conditions stipulated for operation within the Sandbox; (ii). The participant has acted in a manner that is detrimental to customers and the public; and (iii). Critical/technical flaws are observed and have remained unresolved for 30 days.

Salami said the issued guidelines remains part of its Commission’s strategic objective to drive innovation of products and services, ensure operators are professional in the conduct of their businesses in line with best practices.