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Chuks Udo Okonta
The National Insurance Commission (NAICOM) said it would continue to fight the menace of rate cutting through enactment of stricter regulations.
The Commissioner for Insurance Mohammed Kari, disclosed this at the 2016 Risk Management Conference and Awards Ceremony in Lagos. He noted that the commission was forced to impose stricter regulation such as rules on overriding commission because it observed that some risk managers encouraged insurers and brokers to sign on to their risks without proving full details of such risks.
He noted that the illicit activities of those risk managers encouraged rate cutting which is inimical to insurance growth.
Kari called on risk managers to use their important position and power in the market to encourage changes in insurance buying process and to drive through efficiency and transparency in the market, adding that such pre-emotive action will help reduce the need for stricter prescriptive regulation.