Brokers wary over microinsurance commission

Chuks Udo Okonta

Before take-off of the microinsurance, some brokers are already worried over the commission they would generate from the business.

A broker told Inspen that though the business would help deepen insurance penetration, brokers may not have enough commission from it. The broker said this may discourage most brokers, adding that insurance agents may be the best personnel to sell microinsurance products.
Contrary to this belief, the Nigerian Council of Registered Insurance Brokers (NCRIB) the umbrella body of brokers has kick-off campaign of taking microinsurance to the grassroots.
The President Ayodapo Shoderu and some council members yesterday, visited the Iyaloja of Lagos State, Mrs Folashade Tinubu-Ojo.
Shoderu noted that the NCRIB will give wings to microinsurance insurance initiative by visiting the unreached groups in the society.
He said the council’s decision to embark on the awareness campaign stems from the fact that the growth of the industry hinges on development of microinsurance practice.
He said: “It is auspicious to state that the council has identified other notable stakeholders such as market women associations, artisans groups and road transport workers employees association for insurance awareness.
“The council under my leadership will give wings to the microinsurance initiatives by visiting these seemingly unreached groups.
“The present administration shares the belief that if the insurance industry must grow, our emphasis and focus must shift to microinsurance to home in its benefits to the industry and the economy.”
He said the council would embark on well coordinated awareness campaign to educate the public on how they can leverage insurance to mitigate risks. He added that the spate of loss incur by the public is worrisome, stressing that the losses would have been mitigated if the people have insurance.