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Chuks Udo Okonta
The National Insurance Commission (NAICOM) is almost set to unveil the capital base for firms that would help liberalised the channels of insurance distribution.
Inspen gathered that the capital base, would be unveil next month, when the guidelines to regulated the firms would be released.
Efforts to ascertain the fee for the license failed, as the source said the commission is putting finishing touches on the guidelines and the fee to be paid by registered firms.
The Commissioner for Insurance, Mohammed Kari, at a forum in Lagos said the commission is making all efforts to liberalized the channels of distribution, adding that the step was taken because distribution plays a key role in the propagation and marketing of insurance products to the consumers.
He noted that licensing such channels is imperative to protecting the consumers and also to ensure ethical, orderly practice and further protecting the credibility of the insurance sector which is the principal mandate of the commission.
“However, the employment of such channels can only be utilized if that institution is licensed by the commission in line with the provisions of the extant law.
“It is the licensing of those distribution channels that would authorize them to sell, distribute,refer or introduce insurance products through another licensed insurance entity to their customers and earn a fee or commission,” he said.
