Ebere Nwoji
Insurance industry in Nigeria has been described as an endangered profession due to numerous challenges bedevilling the sector in the areas of changing global regulations and laws affecting. its operations.
Insurance industry in Nigeria has been described as an endangered profession due to numerous challenges bedevilling the sector in the areas of changing global regulations and laws affecting. its operations.
President, Nigerian Council of Registered Insurance Brokers, (NCRIB),
Mr. Shola Tinubu, who stated this, noted that locally the industry was
grappling with a lot of internal challenges, with their attendant
negative implications on the image of the industry.
He, however, said in spite of these challenges, there was a glimmer of hope in the horizon.
He argued that the industry remains the last hope of the common man.
“For as long as risks remain part of human endeavour, insurance would continue to be relevant. What we need, therefore, is to be apprised with survival and thriving strategies, especially at this time.”
He argued that the industry remains the last hope of the common man.
“For as long as risks remain part of human endeavour, insurance would continue to be relevant. What we need, therefore, is to be apprised with survival and thriving strategies, especially at this time.”
He said this at the 2018 national conference of the council, with the theme: “Insurance Industry: Survive, Thrive.”
The NCRIB president noted that the conference came barely a year to his
assumption of office as president of the NCRIB. He acknowledged that the
cooperation and support given by members of the council have enabled
him surmount most of challenges as the council looks positively to the
future.
“The council under the present
leadership has been able to up the ante in terms of giving more
visibility to insurance brokers and the council through the corporate
visibility project, which has been extended to all zones of the country,
while at the same time promoting knowledge and competences of members
through organisation of regular training programmes for members.
He noted that the council has maintained good relationship with industry stakeholders, as well as other players outside the insurance industry for the benefit of the members.
He noted that the council has maintained good relationship with industry stakeholders, as well as other players outside the insurance industry for the benefit of the members.
“In terms of ensuring more effective
legislation, the Council has been quite proactive in making suggestions
and input into legislations coming in form of guidelines to the broking
sector. Without any equivocation, the relationship between the NCRIB and
the National Insurance Commission (NAICOM) has improved, despite
several challenges dotting our path.
“We are all witnesses to the progress recorded by the council in reducing the regime of fines and penalties usually imposed on brokers several months ago, principally due to lack of knowledge or understanding requirements expected of them by the regulator,” he said.
“We are all witnesses to the progress recorded by the council in reducing the regime of fines and penalties usually imposed on brokers several months ago, principally due to lack of knowledge or understanding requirements expected of them by the regulator,” he said.
Tinubu noted that through collaboration
and dialogue with the regulator succeeded in making the regulator
consider the position and role of brokers in insurance chain as such
pacified the regulator to keep hold on extending the exercise to brokers
before the recent intervention on the exercise by court.
“Currently we are concerned that the guideline may be seeking to tier brokers which is not seen as required since brokers are professional firms and not risk carriers. However, we have confidence in the approach of the commission to ensure all aspects are fully discussed,” he stated.
“Currently we are concerned that the guideline may be seeking to tier brokers which is not seen as required since brokers are professional firms and not risk carriers. However, we have confidence in the approach of the commission to ensure all aspects are fully discussed,” he stated.
The National Insurance Commission
(NAICOM) recently decided to obey a Federal High Court order, which had
directed the regulator to stop the implementation of its proposed
recapitalisation exercise for the industry, pending the expiration of a
pre-action notice.
The commission, had shifted the deadline for implementation of the policy from the initial January 1, 2019, to October 1, 2018.
The commission, had shifted the deadline for implementation of the policy from the initial January 1, 2019, to October 1, 2018.
Justice Muslim Hassan had given the court order in a class action
brought by some shareholders of insurance companies in Nigeria,
challenging the new minimum solvency capital policy proposed by the
NAICOM.
This followed the decision by NAICOM to
revise backward, the recapitalisation deadline from the January 1, 2019,
it had earlier fixed, to October 1, 2018, which stirred controversy in
the industry.
At the hearing, counsel to the applicant, Bert Chucks Igwilo, had told
the court that they had filed and served the commission a pre-action
notice on September 6. He had further said the applicants had before the
court, an originating summons ex-parte, restraining the NAICOM from
enforcing the proposed policy pending the expiration of the pre-action
notice.
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