Delisted broking firms dare NAICOM, continue businesses

NCRIB's president Ayodapo Shoderu

Chuks Udo Okonta

Although, the National Insurance Commission (NAICOM) has delisted over 120 broking firm from carrying out legitimate businesses, most of them have continue to operate underground.

NAICOM, in September 2014, delisted no fewer than 120, but with the intervention of the Nigerian Council of Registered Insurance Brokers (NCRIB), the commission gave a concession for the affected brokers to re-register with their former names. The grace extended to them lapsed by November 30, 2014, with none been able to re-register.

Inspen gathered that out of the 120 delisted, about 45 are active members of the NCRIB which is made up of 577 insurance brokerage companies.

A brokers said most of the delisted brokers are small firms which have over the years cease to operate, adding that NCRIB members that were affected should be about 45. The source noted that all efforts made to get the affected members rebound failed as NAICOM insisted that the law must be followed.

Our investigations revealed that some of the delisted firms have continued to carry out broking businesses, focusing on smaller units that will not attract the attention of NAICOM.

Some of them tailor their operations on packaging motor insurance businesses; group life for cooperative societies and other classes for underwriters and collect their commissions.

An expert said their activities will remain as long NAICOM cannot take their certificates of incorporation which they glaze at the offices. He noted also that they will remain in business since underwriters are concerned about premium not minding the source.

These so called illegal brokers often execute their trade with insurance marketers, who are given high targets and others placed on commission without salaries by the underwriting firms.