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Chuks Udo Okonta
The National Insurance Commission (NAICOM) is seeking the understanding of insurance brokers so as to achieve five core mandates.
According to NAICOM the mandates include: Projecting the additional values created by the new regime of third-party motor insurance cover; the NAICOM Portal; improved soundness and stability of insurers; better market conduct practices and fair treatment of insurance consumers; as well as ongoing collaboration with state governments on compulsory insurances, among others.
The Commissioner for Insurance Sunday Thomas, who said this in his keynote address presented at the Nigerian Council of Registered Insurance Brokers (NCRIB) 2023 Chief Executive Officers Retreat in Ogere, Ogun State, noted that insurance brokers have very important roles to play in the collective aspiration to reposition the industry.
He appreciated the cooperation and support of the NCRIB to the Commission’s effort towards ensuring professional and ethical standards amongst its members as well as the continued support and representation of the NCRIB in various industry committees instituted by the Commission, such as the AfCFTA Committee, Committee on the Insurance Bill amongst others.
“I must emphasize that irrespective of the differences in approach or methodology, we are all committed to deepening insurance penetration and growth of the Nigerian insurance industry.
“It has therefore become imperative that we all work towards aligning our collective vision and goals for the industry in order to present a formidable front,” Thomas submitted.
He noted that both the regulator and brokers must break from an industry that is perceived as one that is always at logger-heads on matters that ordinarily are for the progress of the industry, adding that this cannot be achieved without being true to themselves as professionals in this time honoured industry.
“Let me emphasize here that for this industry to remain sustainable, we must accept changes that come with modernization and technological advancement.
“This is why we must realize that distribution channels for insurance products must be expanded beyond the traditional norms,” he posited.
The Commissioner for Insurance maintained that every arm of the sector must hugely invest in technology in order to compete or be able to meet the expectation of clients, noting that it has thus become imperative to support the Commission’s efforts to bring emergent online platforms for distribution or provision of insurance under the Commission’s regulatory purview in the interest of the Nigerian insurance industry.
“An important issue is the need for operational standards to prevent or reduce, to the barest minimum, unethical practices which ridicule or impugn the integrity of the Nigerian insurance industry.
It is our humble view that strong and sound firms are better able to invest in the much needed IT solutions to ease operational pain-points within the industry hence the need to dissuade portfolio broking firms,” he enthused.
He charged insurance brokers to begin to re-examine the insurance broking value proposition beyond the traditional perception, stating that this is necessary to enable the insuring public/insureds appreciate other values offered, as the rhythm has changed and people may only use services that provide priority values to them.
