SPEECH DELIVERED BY THE PRESIDENT OF THE NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS, MR AYODAPO SHODERU, FIIN FCIB DURING HIS COURTESY VISIT TO THE IYALOJA GENERAL OF NIGERIA IN LAGOS ON WEDNESDAY, JANUARY 8, 2014

SPEECH DELIVERED BY THE PRESIDENT OF THE NIGERIAN COUNCIL OF REGISTERED INSURANCE BROKERS, MR AYODAPO SHODERU, FIIN FCIB DURING HIS COURTESY VISIT TO THE IYALOJA GENERAL OF NIGERIA IN LAGOS ON WEDNESDAY, JANUARY 8, 2014

The Iyaloja General of Nigeria

Distinguished members of the Market Associations here present

Members of my delegation

Ladies and Gentlemen

Gentlemen of the media

I am most delighted to be granted this audience by the Iyaloja General of Nigeria on this courtesy visit. Madam, may I use this medium to congratulate you on your assumption of the exalted office as I pray the Almighty Allah to grant you the wisdom and knowledge you require to take the lot of market men and women in Nigeria to greater heights as well as excel brilliantly in office.

My visit today is meant to extend the frontiers of relationship between the NCRIB and other strategic insurance clients as well as break down the barriers of communication that has slowed down the growth of insurance generally in Nigeria. In spite of the fact that the world we live is daily prone to risks, both to the individual and corporate institutions, it is a matter for regret that only few Nigerians understand the value of insurance, talk less undertaking it. Unlike in advanced countries where insurance has been taken as part of the culture or way of life, serving as their best succor in times of losses, Nigerians have continually shunned insurance to their ultimate disadvantage. Apart from helping to preserve wealth, insurance is the last hope of the common man. I cannot but refer to the popular notion that WHATEVER IS WORTH HAVING IS WORTH INSURING! Although reasons for poor acceptance of insurance are many, the major ones are poor image and low awareness about the industry as well as wrong notion about what the experience of someone close to one had been in the past. I make bold to say that today the story of the insurance industry in Nigeria has changed positively, as insuring clients could now bank on responsive and responsible professional bodies and regulatory institutions that could take up their cases in the event of infringement of contracts, usually during claims payment.

This is definitely an auspicious platform for me to stress that market associations have pivotal roles to play in further assisting their numerous members through their encouragement to imbibe insurance culture. As we are all aware, this critical segment of our nation’s economy cannot be neglected in any progressive economic initiatives. Happily, the insurance industry under the Market Development Restructuring Initiatives (MDRI) has accelerated attention towards micro- insurance, as a way to help Nigerians enhance their wellbeing and grow the insurance industry on the other hand. Suffice it to say that market men and women are prone to diverse risks that daily threaten their existence. The most significant threat is fire outbreaks which had led to loss of lives and loss of billions of materials when they occur. In 2013 alone, major fires had been recorded in major markets namely;

Odo Ogbe market in Ile Ife;

Ilubirin market fire in Ebute Metta;

Alade Market fire in Ikeja;

Kuje market fires in Abuja;

Mile 1, market fires in Portharcourt and the most recently the Sawmill market fires in Pako market, Ipaja, Lagos. Other major fires in the past were the Tejuoso market fires; the Kano main market fires and the Idumota fires which claimed properties running to billions of naira. It is an understatement to say that these fires had left gory tales for the victims and completely drove many market women and men out of business, increasing the severity of poverty in the land, considering the fact that many of the traders were the bread winners of their respective families. Accepted that governments, concerned philanthropic individuals usually rise to give some form of token support to the victims, such assistance were only momentary and most times too small to return the marketers to the position they were prior to the sad incidence. This is where the insurance industry comes in to carry the risks of the marketers, even before any form of losses occur; and when they occur insurance returns them to the position they were prior to the loss.

Ma, with a positive collaboration between your Association and the NCRIB, the burden of providing help or succor to your numerous members in the event of such highlighted losses would be taken off your shoulders, leaving you with more time and resources to concentrate on other progressive ventures that will benefit your members. Aside from this, marketers could also take advantage of such insurances like Burglary, Consequential losses, Goods and Money in Transit; House Holders; All Risks insurance and Motor Insurances, etcetera

The question that may be on the lips of many people here is: what then is the role of the Insurance Broker in insurance arrangement? The Insurance Broker is the professional intermediary that interfaces between the insurance companies and the insurance clients. They ensure they "decode" insurance conditions to clients in such a way that they could understand and assist them to pursue their claims when a loss occurs. The involvement of an insurance Broker in an insurance arrangement do not increase the premium or amount payable by clients as many people believe, and if anything they even help them to negotiate a reduced premium, which the client would not be able to get by going directly to the Insurance Companies. As a matter of fact, the Insurance Broker is a professional ally of insurance clients as he could be called upon to render personalized services even at odd times and places to clients. The NCRIB Law has vested on our Council the power to regulate and control the conduct of the over 500 Registered members in its fold. I am happy to note that the Council has been playing these roles creditably. My submission is that market women and men need the services of insurance brokers to maximize the value of their insurances and grow their wealth.

I cannot end my address without saying a word of commendation about the positive strides of the Lagos State government in growing insurance as part of its people’s wellbeing initiatives. We are aware of the various ultra-modern markets being put in place by the government to make life bearable for market women and men in the state. It is, however, my appeal that the government should put in place adequate building insurance to cover risks that may be associated with the structures, in line with government’s policy on compulsory insurance of public buildings. It is through this step that the state would be able to justify the huge investments on the projects and assist the well- being of marketers that will ultimately be using them.

Once again, I register my deep appreciation to the Iyaloja General for this delightful audience as our Council looks forward to a rewarding relationship with your office, starting from today.

Thank you for listening and God bless.

AYODAPO A. SHODERU, FIIN, FCIB
PRESIDENT/CHAIRMAN, GOVERNING BOARD