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Chuks Udo Okonta
Inadequate motivation of insurance agents by underwriting firms remains one of the clogs to growth of the sector, which over 9,000 agents out of the 10,000 registered professionals are without structured retirement plan.
Investigation by Inspenonline revealed that presently, only three insurance companies have retirement scheme for their agents.
It was gathered that of the three firms, only one enrolled its agents with the Contributory Pension Scheme (CPS), while the other two have in-house structure which is tied to deferred annuity plan.
According to top agents who spoke with this medium, in the deferred annuity plan, the firms deduct certain amount of money from the agents commission and also make contributions on behalf of the agents into the plan.
The agents in this arrangement, it was learnt, are allowed to withdraw the total fund whenever they decide to leave the companies for another venture.
The agents who didn’t want to be named, expressed misgivings over the plight of agents, who they said work without adequate motivation.
One of the agents, told this medium, how an agent that worked in a company for over 30 years left the firm without anything to fall back on.
He noted that insurance firms without retirement plans for agents only provide annual life and accident covers which do not provide up to N1 million sum assured.
Another agent told Inspenonline that many of the retired agents presently survive on donations from friends and families, adding that each day, he gets calls from at least three retired agents seeking financial assistance.
He called on the National Insurance Commission (NAICOM) to liberalised the agency network to enable agents operate independently without been unnecessary tied to an insurance company.
He lamented that the demotivation meted on agents, had forced many of them out of insurance to sectors like real estate and pension, while others have left the country.
A Director with one of the leading insurance companies, told this medium that the agents are considered as contract staff, hence, it would be difficult for most firms to have a robust retirement arrangements for them.
The Director urged agents to buy what they sell by making their personal retirement plans through insurance instruments like deferred annuity.
