NAICOM retains 8% group life commission

NAICOM retains 8% group life commission

Chuks Udo Okonta

The National Insurance Commission (NAICOM) has pegged group life insurance commission at eight per cent Inspen has learnt.

In a circular issued by the commission to underwriters and brokers, it ordered them not to charge more than eight per cent commission on group life insurance, adding that violators would be sanctioned.

NAICOM made it clear to the operators that group life commission is not nine per cent as been canvassed by some practitioners.  

It was gathered that underwriters and brokers have been on a running battle over what should be charged as commission.

Investigation revealed that both parties early in the year agreed to raise the commission to nine per cent, but the underwriters later reneged on the agreement, as it was considered inimical to their operation.

The circular by NAICOM, it was gathered was issued to halt the running battle between brokers and underwriters.

From a reliable source, it was learnt that NAICOM made several attempts to settle the beef between the parties, but failed because the underwriters were not ready to keep to the agreement reached with the brokers early in the year.

Though brokers were uncomfortable with the new policy, issued by NAICOM, they agreed to abide by it to avoid been sanctioned.

The commission would be applied on this year’s Federal Government group life insurance, which premium is valued at about N7 billion and over 300 brokers appointed by the Federal Head of Service.