Several Islamic insurance companies will commence operations in Nigeria in the next couple of months, and will be the first set of fully-fledged takaful Insurance companies in the country. Applications had been made to the National Insurance Commission (NAICOM) for approval to establish five takaful companies, but the regulatory green light has been given to two to date, reported the National Mirror. The Commissioner for Insurance, Mr Mohammed Kari, said at a takaful symposium last weekend that in addition to three takaful window operators, the regulator has licensed two fully-fledged takaful companies. However, Mr Plus Agboola, Director of Authorisation and Policy at NAICOM, indicated that three licences have been approved for fully fledged takaful companies, reported the Leadership news website. He said: “For window operations, we have recevied many applications, but for fully-fledged takaful companies, we have about five applications, but we have given licences to about three.” The remaining applications for a full takaful licence are still receiving attention from the regulator. One of the licensed takaful companies, Noor Takaful Insurance Company, is expected to officially start operations next month in Lagos, while the two others are putting finishing touches to their setup and could commence operation by next year. The new takaful firms are mostly owned by foreigners, in particular investors from the Middle East and Asia, who have the needed expertise in Islamic insurance and have operated successfully in other parts of the world. Local insurers have not floated Islamic insurance subsidiaries, although some of them are operating takaful windows. Conventional insurers which have takaful windows include African Alliance Insurance and Niger Insurance. These Islamic insurance operations follow the introduction of takaful guidelines in 2013 by NAICOM. The managing director of Riskguard-Africa Nigeria, Chief Yemi Soladoye, explained why some operators are hesitant to leverage opportunities in takaful and microinsurance. He said: “Most operators are neck-deep in running businesses the old style; they are faced with the challenge of meeting the boards’ and shareholders’ expectation and this makes it difficult for them to invest in future market developments like microinsurance and takaful insurance.” Industry sources say that currently, window operators are selling takaful plans in the northern part of the country. The three fully-fledged operators are also targeting the North and Muslim communities for a start. Experts who spoke at a takaful symposium organised by Noor Takaful in Lagos last weekend, called for more awareness of Islamic insurance as well as training in this form of insurance.
Nigeria 's National Insurance Authority ( plc ) has secured approval for the first two full - fledged takaful companies to sell Islamic insurance in the country and is considering a number of other applications . The new takaful companies are mostly foreign - owned , with investors from the united East and Asia who have the interest in Islamic insurance .