NEWS AND EVENTS


CBN Issues Revised Guidelines for Bancassurance

Months after the National Insurance Commission (“NAICOM”) ordered suspension of bancassurance partnership deals among insurers and banks in 2016 due to irregularities in bancassurance relationships, the Central Bank of Nigeria (“CBN”) has, on March 31, 2017 issued the revised Guidelines on Bancassurance Referral Model (the “Guidelines”). The Guidelines set out the regulatory framework for banks offering bancassurance products through the non-integrated referral model.

By the Guidelines, banks can only refer their customers to insurance companies and are expected to (a) execute bancassurance agreement(s) with insurance companies, (b) obtain CBN’s approval to offer bancassurance referral services, and (c) earn referral commissions on consummated transactions as approved by NAICOM. Further, banks are prohibited from (a) influencing/compelling customers to take up insurance products from their partner insurance companies and (b) charging customers any fees for referrals. Failure to comply with the Guidelines shall attract a N2,000,000 fine and suspension of licence/prohibition from offering bancassurance referral services in the future.