NAICOM,brokers,agents colloborate to promote MDRI

Chuks Udo Okonta

Barely unforeseen circumstances the Market Development and Restructuring Initiative (MDRI) would soon receive a boost as brokers are chating a new course on how to leverage on the programme to deepen insurance awareness at grassroots, Inspen can authoritatively reveal.

Investigation revealed that brokers have written the National Insurance Commission (NAICOM) seeking a guideline that would enable them colloborate with agents to sell compulsory insurances provided in the MDRI at the grassroots.

A source from the broking arm, said the move is to activate the provision in the MDRI that gives room for sub-brokers in the implimentation of the programme.

Though the move by the brokers is still rapped, as the strategies have not been fully developed, it was learnt that when operational, brokers would be enabled to employ agents to market their products, especially the compulsory ones on their behalf.

It was also gathered that the move would help deepen the retail market, which is presently left untapped.

MDRI is a medium term industry development plan by NAICOM, with the first phase covering the period of 2009-2012. It was designed to operate as the first phase of the necessary reforms in the insurance sector and focused on the following: enforcement of compulsory insurance products, increase insurance awareness, reduction in the incidence of fake insurance, insurance agency reform. It was the industry’s projection that the following results will be achieved by the end year 2012: gross premium income of N1.10 trillion, creation of additional 250,000 new jobs, make substantial contribution into the Fire Service Maintenance Fund (FSMF) as provided in section 65(5) of the Insurance Act and attain3.0 per cent insurance contribution to the nation’s Gross Domestic Product (GDP) as against 0.72 percent in 2008.

Going by the inability of the industry to achieve the set targets last year, NAICOM is making frantic effort to reveiw the programme to pave way for attainment of the set projections.

The Managing Director Riskguard-Africa Nigeria Limited and Consultant to NAICOM on MDRI, Yemi Soladoye, said NAICOM would soon come out with a fully repackaged programme for the initiative.

"I know that NAICOM is repackaging to come back and hit the thing very well to address the problems sofar encountered. I also know that some insurance companies, that have embraced the initiative," he said.