Why quarks thrive in insurance business – NAICOM



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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has attributed the infiltration of quarks in insurance business to absence of insurance brokers at rural areas in the country.

According to the Commissioner for Insurance, Mohammed Kari, who spoke at the just concluded 2016 Insurance Brokers Conference and exhibition in Abuja, the concentration of brokers’ operations in the commercial cities of Nigeria, leaving many Local Governments (and even some states) without insurance presence, provides apple space for quarks to shine.

“I dare say that high penetration cannot be achieved when most providers concentrate their operations in the commercial cities of Nigeria. Many Local Governments (and even some states) are without the presence of any insurance Institution. This provide all the space the so-called quarks need to shine. This obviously does not help the penetration of insurance in the country and does not promote future growth of the industry.

“The Brokers could even take it a step further. With good understanding and proper arrangement, Brokers could actually enter into partnership with Insurance companies to represent their interest in up-country locations. The practice of all Brokers chasing the so-called “juicy” Government accounts should be discouraged. It is not helping thegrowth of the industry, while at them same time it has attracted unpalatable publicity,” he said.

Kari urged the brokers to go beyond the collection of premium, claims’ cheque (where applicable) and forwarding of renewal notices, stressing that conscious effort should be made by broker to bridge the information and knowledge gap between the provider and the consumer.

He posited that the future market will certainly belong to brokers who have worked hard enough to secure the trust and loyalty of the consumer.

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