Brokers decry unethical practices by underwriters

From left: President Nigerian Council of Registered Insurance Brokers (NCRIB) Ayodapo Shoderu, presenting an award to Managing Director Niger Insurance Plc, Kola Adedeji at the event in Lagos.

Chuks Udo Okonta

Insurance brokers have expressed misgivings over unethical practices exhibited by some underwriters.

The President Nigerian Council of Registered Insurance Brokers (NCRIB) Ayodapo Shoderu, at the council’s members evening hosted by Niger Insurance Plc, today Tuesday, in Lagos, said the broking sector has continually been endangered by the activities of some underwriters who have formed the habit of subverting brokers on existing accounts.

He noted that what such unethical underwriters do is to go back to woo clients brought in contact with them by brokers, even when the account being covered by the company is still running.

Shoderu said this practice is not only unwholesome, but capable of snuffing life out of brokers, with its grave implications on the national economy.

He said the council has taken the issue up with the National Insurance Commission (NAICOM) as well as the Nigerian Insurers Association (NIA).

Shoderu also called on brokers to disassociate with individuals who have been soliciting membership for a parallel insurance broking body, stressing that the NCRIB remains the only legal body saddled with the registration of insurance brokers in Nigeria.

The Managing Director Niger Insurance Plc, Kola Adedeji, pledged the company’s support and cooperation with brokers, adding that the company will continue to promote ethical practices in all its undertakings.

Chairman, Nigerian Insurers Association (NIA) Remi Olowude, on how he hoped to tackle unethical practices by underwriters said:  “The Association will initiate a review and improvement of the Professional Ethics and Code of Good Insurance Practice for the Insurance Industry in Nigeria.

“It will be the responsibility of all practitioners and institutions to promote and uphold the tenets of the ethics and codes. The Governing Council of NIA will, in addition, draw a charter for all Council members on the conduct of business by their individual companies.

“The proposed charter and adherence to its principles will ensure that Council members lead by example with specific reference to market discipline.”

Findings revealed that the initiatives are yielding little or no results as brokers and other allied operators have continued to decry the unethical behaviour of some underwriters.