Since CBN abolished the Universal Banking Model in 2010. Banks are no longer allowed to own other types of financial services businesses including insurance.
As a remainder and a warning, the Central Bank of Nigeria on its revision of Bancassurance Model has kicked against any bank that is offering products which has insurance features.
According to Vanguard Nigeria, Bancassurance is arrangement in which insurance companies leverage on the customer base of banks to sell insurance products to banks’ customers while referral model is when a bank refers its customers to its partner insurance companies and in return receives a commission from the insurance company.
Money Deposit Banks and other financial service companies, therefore, are not allowed to provide any referral relating to bancassurance and offering free premium payments as additional feature of any of their products.