High cost of incorporating broking firm affects deepening insurance penetration – Agboola

From right: President Nigerian Council of Registered Insurance Brokers, Babatunde Oguntade; Chairman Nigerian Council of Registered Insurance Brokers Lagos Area Committee, Ademola Olutusin and Deputy President, Mrs. Funke Adenusinatvthe event.

*No brokers presence in 16 states

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Chuks Udo Okonta

As the search for means to deepen insurance penetration continues, the Managing Director Peerless Management & Solutions Limited and former Director, National Insurance Commission (NAICOM) Agboola Pius, has said the cost incurred on incorporating a broking firm makes it difficult for the spread of insurance as operators only establish in locations that are profitable to them.

He said this at the Nigerian Council of Registered Insurance Brokers Lagos Area Committee (NCRIB-LAC) 2024 midyear workshop yesterday in Lagos, adding that there should be inceptive for brokers who seek to operate in rural locations, just as it is done in some developed climes.

Speaking on the theme: ‘Enhancing Insurance Penetration In Nigeria: The Pivotal Role of insurance Brokers’ Agboola stated that brokers play key role in insurance distribution as they generate 68.32 per cent of the insurance industry income.

He decried the absence of insurance brokers in 16 states – Nasarawa; Niger; Adamawa; Borno; Gombe; Taraba; Yobe; Jigawa; Katsina; Kebbi; Sokoto; Zamfara; Ebonyi; Bayelsa; Cross River and Ekiti.

He called for collaborations; partnerships; operation cost reduction; harmonizing experiences; leverage on artificial intelligence amongst other things in the quest to deepen insurance penetration.

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