NAICOM sets agenda for brokers

NAICOM sets agenda for brokers

Chuks Udo Okonta

The requirement of today’s regulatory and business environment require sufficient financial outlay and human capital to survive, the Commissioner for Insurance Fola Daniel has said.

The National Insurance Commission (NAICOM) helmsman gave the admonition at the 50^th anniversary, lecture/ national conference of National Council of Registered Insurance Brokers (NCRIB) in Abuja.

He urged brokers to change their mode of doing business, adding that gone is the era of one man-one office-sole proprietorship. He said it is unpleasant to note that there are some brokers trying to operate below the radar for patronage basis.

He said: “The requirements of today’s regulatory and business environment means you need sufficient financial outlay and human capital to survive. I want to urge you therefore to up the ante, as they say, by restructuring not only your operations but the structure of your firms.

“From the standpoint of a regulator I do know however that there are new challenges to doing business which members of the Council will have to cope with in other to look back after another half a century and give a good account of memorable achievements.

“Consequently, it is very important I bring some of these challenges to your attention so that as you design your programmes for the immediate future, you will develop strategies for handling them.”

He identified the challenges as: regulations and operational guidelines, the Anti-money laundering law, taxation, various legislations requiring compliance – PENCOM Act and Employee Compensation Act, the IFRS adoption and mode of operations.

Daniel noted that the National Pension Commission (PENCOM) Act requires brokers’ compliance and also creates business for them, adding that it is no longer possible to do business with government without complying with the Pension Reform Act.

He called on the NCRIB to assist her members in meeting the new regulatory challenges. He advocated for adoption of the approach of the British Insurance Brokers Association (BIBA), which has programmes for assisting its members to cope with the demands of the Financial Services Authority (FSA) and other prerequisites for operations.

“The council would not have come this far without the loyal support and hard work of some members of the Council, both past and present. However, it is unpleasant to note that there are some brokers trying to operate below the radar for patronage basis. In spite of your half century it is worrisome that in some quarters we are still challenged by the issue of the value that brokers add to the insurance function. You cannot build capacity by remaining a brief case or patronage commission agent,” he said.

He said NAICOM will continue to act appropriately to ensure adherence to the ethics of insurance profession, adding that while that is done, the commission believes self regulation is the panacea to ease the burden of enforced regulations.