SPEECH DELIVERED BY THE PRESIDENT OF THE NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS, MR AYODAPO A. SHODERU, FIIN, FCIB AT THE 10^TH ANNUAL GENERAL MEETING AND END OF YEAR LECTURE OF THE LAGOS AREA COMMITTEE OF THE NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS, HELD IN LAGOS ON THURSDAY, DECEMBER 5, 2013

·        The Grand Chairman and highly revered icon of business and professionalism, Apostle Hayford Alile, OFR

·        The Deputy Governor of Central Bank, Mrs. Sarah Alade, OFR

·        Chairman of the African Insurance Brokers Association and past President of NCRIB, Prince Dr. Feyisayo Soyewo, MFR

·        Distinguished Resource persons and Guests

·        Chairman and Executive members of the Lagos Area Committee

·        Ladies and Gentlemen.

·        Gentlemen of the Press

  I am most delighted to be invited as Special Guest of Honour at this landmark Annual General Meeting cum End of Year Lecture of the Lagos Area Committee of our Council. Most heartwarming is the fact that this is the first time that I shall be addressing the entire members of the Lagos Area Committee of our Council since my ascension of office as the 17^th President of the Council. Permit me to say that the Lagos Area Committee has projected itself as the leading Area Committee of the Council in terms of membership and size. In the last ten years of its inauguration, this Area Committee has positioned itself as a critical component of the Council which views and opinions must be respected in the scheme of things. Being a bonafide member of the Committee, I have personally been very proud to be associated with you these past years and would not relent in whatever way from sustaining this support.

I must place on record the support which the Local Organsing Committee, made up of your able Chairman and other members of Exco in ensuring the overwhelming success of my investiture as the 17^th President. Through the high profile investiture, our Council has been able to make another impressionable impact in the minds of the nation’s critical sectors/ stakeholders. Let me reassert the views that I have in no way seen my position as  President as a burden, rather I perceive it as a call to serve the industry, in which I have put the most critical working years of my career.

As I made mention in my inaugural speech, the empowerment of Area Committees occupies a pivotal place in my thrust of office as President. This is against the belief that the encouragement of professionalism and commitment of members must be a “Bottom-up approach” and I shall not deviate from this commitment. Other thrusts identified in the inaugural speech included the following;

·        Further professionalization by members

·        Effective Liaison with relevant institutions

·        Manpower development of members

·        Setting up of Accounting Technical Committee to allow the Council cope with the unfolding dynamics in the financial services sector, nationally and globally, and

·        Effective foreign relations

I am most delighted to inform you that in the few days of my administration, I have started to doggedly fulfill some of the thrusts of my office, particularly through my recent visitation to some government functionaries and net worth individuals across the country. Among the institutions I have already visited are the National Insurance Commission (NAICOM) and the Federal Territory Emergency Management Agency. Similarly, I have paid visits on some notable traditional rulers, among them the Alake of Egba-land and the Oba of Idena Remo, Oba Omosanya Akinyemi. My visit to the royal institutions was meant to galvanise the traditional rulers to utilize their vantage positions in propagating the growth of insurance, especially at the grassroots. It is my opinion that the need for enhanced image of the industry must be an all- inclusive and holistic crusade that must carry along all opinion moulders in the country.

It is quite auspicious to inform you that at the NAICOM, I on your behalf, tabled the following issues before the Commissioner:   

PENALTY FOR ERRING BROKERS

Whilst commending the Commission for ensuring strict compliance of insurance brokers with high ethical and regulatory standards in the insurance industry, I used the medium to passionately appeal to NAICOM to always give warnings to erring members before severe penalty is brought to bear on them. We strongly advocated that such companies could be given maximum of two warnings before being penalized. Similarly, we appeal for a review of the regime of fines imposed on Brokers, considering that at least 80 per cent of them are small in sizes and heavy penalty may drive them completely into extinction, a situation that may be counter-productive to the growth efforts of the industry pioneered by NAICOM.

 

 

CLAIMS PAYMENT BY UNDERWRITERS

I used the opportunity to implore NAICOM to consider a strong directive to Underwriting companies on the need for them to be prompt in the settlement of claims to clients. Since the sustenance of any insurance industry is its ability to pay claims promptly, the Commission should be more stringent on its stand or directive to Insurers on claims payment; the same way the Commission frowns at Brokers with regards to remission of premium.

SUSTAINANCE OF LAW ON NCRIB REGISTRATION & NAICOM LICENSE

I appreciated NAICOM for ensuring sanity in the Broking sub sector through the harmonization of provisions of the law regarding NCRIB Registration and NAICOM licensing. This collaboration should continue for the benefit of the insured and the overall growth of the industry. The day is gone when unscrupulous Brokers hide under either of the two bodies and by so doing misleading the insuring public. On the part of my team, I pledged to do all within our powers to ensure maximum cooperation with NAICOM and to ensure that no charlatan breaks the ranks of insurance broking any more.

UNDERWITERS OWNING BROKING FIRMS

We strongly advocated against the illegal acts being perpetrated by some Underwriters who wholly own or have substantial interest in insurance broking firms. It is regretful that in spite of the position of the law on this many Underwriters still flagrantly disobey the law to the detriment of the industry. Since the matter is a legal or regulatory issue, we advised NAICOM to direct greater attention to the issue for the better adherence to the overall benefit of our practice.

I am most delighted to note that all the issues were received in good faith by the Commission which promised to sustain the tempo of relationship with the Council. Among other things, the Commission had promised to exercise more leniency in imposition of sanctions on our members and promised to tackle underwriters who infringe on the rules of having substantial shares in Brokerage firms at the detriment of the latter. Also on prompt claims payment by Underwriters, the Commission promised to collaborate with our Council to ensure that this is achieved to the benefit of the industry. Notably, the Commission, however, advised the NCRIB should urgently address the following issues

·        The illegality of Overriding Commission being collected by many Brokers. The Commission threatened that it would come down heavily on any Broker who continued with the nauseating practice which has slowed down the pace of growth of the industry. The Commission condemned this act unequivocally and advised our members to refrain from this act. If the statutory Brokerage income due to members is becoming inadequate, we could begin the process of a review.

·        The need for Brokers to continually upscale their professional skills. Since the worth of any professional is his/ her ability to display some measure of expertise and extensive knowledge in his chosen field, our members need to continually appraise themselves about contemporary developments in the industry and beyond.

·        On NO PREMIUM NO COVER: members are advised to continually adhere to the rules and that any form of infringement noticed, especially from Underwriters should be reported promptly to the Commission.

·        There is need for Brokers to be strictly professional in the discharge of their duties.

CONCLUSION

Permit me to once again commend the Lagos Area Committee for the quality of issues to be addressed at this forum. The theme “State of Insurance Industry and its bane” has remained an inexhaustible topic, capable of throwing up some solutions to the industry’s besetting problems. The choice of Dr. (Mrs) Sarah Alade for the theme paper is most appropriate, considering her pivotal position in the nation’s financial services sector as a regulator. Also, the sub theme: “Human Side to Infrastructural Decay” is germane as it will tickle national consciousness on individual’s duty of care to national assets. Suffice it to say that insurance will thrive better in an environment where the public is maintenance and safety conscious. Finally, since the common adage says Health is Wealth, the paper on “Health as a Basis for Productivity in a Competitive Global environment” cannot be under played. It is my view that we shall all be richer than we came after this event!

 

Once again, I want to express my well wishes to all members and past leaders of the Lagos Area Committee for its eventful decade of quality progress since inauguration and wish you all greater years of professional fulfillment ahead.

Thank you all for listening and God bless.   

AYODAPO A. SHODERU, FIIN, FCIB

PRESIDENT/CHAIRMAN, GOVERNING BOARD