In a bid to protect policyholders, section 45 of Insurance Act, 2006 (Act 724) requires all new insurance products to be approved by the NIC.
Objectives The main objectives of the approval is to vet and ensure the following
The financial viability of the product
The quality/suitability of the product to the policyholder
The manner in which the product is sold
The ability of the insurance company to meet its obligations under the contract
An application for product approval must contain the following documents; 1. Transmittal letter 2. Application/proposal form 3. The policy wording/documentation together with any riders and endorsements 4. An actuarial memorandum 5. Marketing Brochure 6. Certification(s) 7. Filing fees