Brokers woo agents on microinsurance

Brokers woo agents on microinsurance

Chuks Udo Okonta

Insurance brokers are working out ways to partner agents to harness the enormous microinsurance opportunities in the country Inspen has learnt.

Investigation revealed that brokers, who were perturbed earlier with the revival of agency system by the National Insurance Commission (NAICOM), have resolved to partner with the agents due to their inability to reach the grassroots where the opportunities exist.  

A source at the Nigerian Council of Registered Insurance Brokers (NCRIB), said some brokers in their individual level are looking at how they can partner or synergise with some agents, adding that the brokers are looking at how they can get the agents under their brand to reach the grassroots.  

 Worried by the untapped microinsurance opportunities, which is put at over N60 billion, NAICOM, said it is working on a draft guideline for the entrenchment and development of the business.

Commissioner for Insurance Fola Daniel, said the draft guideline on micro-insurance is being exposed to the industry, experts and other stakeholders for their inputs and contributions, adding that thereafter, the final draft will be drawn and released to the market.

He noted that the commission intends to collaborate with other relevant regulatory agencies in achieving the plan.

He said: “To underscore our commitments to the development of micro-insurance, the commission recently conducted a nationwide diagnostic study on micro-insurance in collaboration with GIZ, a German agency for sustainable development, Access to Insurance Initiative (AII) and local consultants.

“We have also put in place a draft guideline for micro-insurance business. The draft is being exposed to the industry, experts and other stakeholders for their inputs and contributions before the final draft will be drawn and subsequently released to the market.”

Daniel noted that initiative is part of the commission’s drive to open up and develop the insurance market at the grassroots and by extension, increase the sectors, contributions to the nation’s Gross Domestic Product (GDP).