Over 13000 insurance agents aren't registered with NAICOM

Chuks Udo Okonta About 70 per cent of insurance companies do not register agents engaged to sell their policies, with the National Insurance Commission (NAICOM), Inspen has learnt. Our investigation revealed that out of about 15,000 agents engaged by insurance companies, reports from NAICOM state that only 1900 are registered. It was learnt that the agents were not regisreted because the insurance companies want to avert expenses charged by NAICOM on agents. The Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, said it is on record that about 70 per cent of insurance companies do not register their agents. He noted that the operators do so, because they want their agents to perform before they can start paying huge fees on them. He urged insurers and brokers to engage and train agents to deepen insurance penetration. He said: "The fact is that even the brokers need agents. I have been to a country where a broker has 3000 agents. In Kenya, there is a bankassuarnce agreement between two brokers and two banks. What the brokers did was to appoint agents that sell insurance to customers of the bank. Agents can only sell a particular product of a particular underwriter, but a broker sells products of all underwriters." Observers said agents are crucial link between the insuring public and the insurer. therefore, if they are well trained, they could effective play the role of an efficient intermediary between the insurer and insured in insurance transactions. The said it is pertinent to state that unlike the insurance broker who is the agent of the insured, the insurance agent is the agent of the insurer who appoints him. This means that the agent is restricted to the insurer who appoints him for his services.