NAICOM plans stringent rule for brokers licence renewal

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Chuks Udo Okonta

Barring any change, Insurance brokers with 50 per cent of total income from a client would be denied renewal of their operating licences.

Inspen authoritatively gathered that the National Insurance Commission (NAICOM) is planning to evolve a guideline which is in line with the insurance market development to ensure that brokers do not just hook up to a single client, but expand their operations to deepen the market.

The decision, when implemented, it was learnt would force many brokers out of their comfort zone to engage in aggressive marketing.

NAICOM had recently released draft guidelines on independent agent, mutual, associations, community and state government financial advisor, which it believes will also help deepen insurance retail market.

NAICOM said its is planning 12 new distribution channels as part of its efforts to boost market development and deepen insurance penetration

The commission believes that creating more distribution channels to support baccassurance referral model which is already in place will enable insurers penetrate the grassroots.

‚ÄúThese channels will increase accessibility to insurance products, so that majority of the population can access the product as part of their financial planning,” Mohammed Kari, Commissioner for Insurance said.

The released draft has being generating heated debated amongst operators especially brokers.

A comment by a stakeholder reads: “Received draft copies of the naicom guidelines on independent agent, mutual, associations, community….and state government financial advisor. Ehn these are broker-killer recipe. Not to think of it, in the past I had lamented on the other anti brokers guideline on bancassurance. Well we will continue to watch to see what the masquerade has in its pocket.

“Nevertheless a closer look at the motives of naicom in releasing these guidelines is nothing than self pecuniary interest. Forget the so called stance of market development. How can the taken away of business and given same to a bank aka bancassurance or the insured himself aka state financial advisor develop the market. That’s to rob Paul to pay Peter. Things don’t work this way.

“Come to think of it, in the guidelines for the state financial advisor, naicom as part of lt’s requirements want them to have professional indemnity of 50m. The commission should also add a certificate of membership of NCRIB to this special”brokers”.

“Unfortunately it’s like nobody is talking. Brokers think, hurricane Maria is coming to your perto Rica through the assistance of your Donald Trump.”

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