Brokers’ operations absence in 12 states - report

Brokers’ operations absence in 12 states - report

Chuks Udo Okonta

There is complete absence of Insurance Brokers in 12 out of 36 states of Nigeria, a study conducted by Giz, a German agency for sustainable development and Riskguard –Africa Limited, has revealed.

The Group noted that 79 per cent of the existing brokers are fringe players who can be deployed into the underwriting or partner agency model under microinsurance.

They observed that there seems to be a legendary apprehension at the Nigerian Council of Registered Insurance Brokers (NCRIB) that anything coming from National Insurance Commission (NAICOM) may not be in their best interest and called on NAICOM to address the issue.

The report said: “There is complete absence of Insurance Brokers in 12 out of 36 states of Nigeria.

“NAICOM will still have to open – up the Agency system, relax the entry points and provide close supervision

“The existing operators don’t see any incentive for new markets and competition only leads to market growth but not market expansion here seems to be a legendary apprehension at the NCRIB that anything coming from NAICOM may not be in their best interest – NAICOM needs to work on this.

“Our study of other countries has shown that insurance brokers have never served as a successful channel for microinsurance distribution.

“Our other studies have however shown that 79 per cent of the existing Insurance Brokers in Nigeria are fringe players who can be deployed into the Underwriting or Partner Agency model under microinsurance.”

Corporate Affairs Manager NCRIB, Tope Adaramola, said the council is working assiduously to address the issue, adding that the present leadership of the council has taken steps in recent time to ensure that brokers’ services are extended to all parts of the country.   

“The report may not be entirely far from reality. It further affirms the steps the NCRIB is taking especially under the regime of our new president Mrs Laide Osijo. The reality confronted her, and that was why she made the empowerment of the Area Committee and Chapters of the Council one of her priority and focus.  

“Of course, what she had done in recent time far exceed what past president did. She is the only president that has gone round all our Area Committee, to ensure that they are properly constituted. Note that you do not get results immediately you start something.”

He said the council is encouraging members to extend their operations to all the part of the country, adding that insurance thrives on numbers and that the larger the clientele of brokers, the better their business.