Federal Government to evaluate yearly renewal of brokers’ licences

The Federal Government has revealed plans to review of insurance brokers’ yearly renewal licenses to operate as brokers in the sector by the National Insurance Commission (NAICOM).

This is as speculations are already making rounds that the renewals could be reviewed from being a yearly activity to once in three years.

Speaking at the 2016 National Insurance Conference held in Abuja, the Minister of Finance, Ms Kemi Adeosun, disclosed that government is most likely to take a look at the subsector with a view to review brokers’ yearly renewals.

According to her, “We will take a critical look at the annual renewals of insurance brokers and see how we can review it. We will find a way around it. I know yearly renewal is not easy for brokers but we will see what can be done about it.”

The Nigerian Council of Registered Insurance Brokers (NCRIB), president Kayode Okunoren, said the National Insurance Commission had licensed 314 insurance brokers to operate in insurance sector of the nation’s economy that there are over a hundred brokers that are still struggling to meet the requirement including payment for renewals.

According to him, findings showed it had always been a hassle between the regulatory body and insurance brokers during the a yearly renewal of their licenses. Insurance operators are speculating that the federal government in its wisdom review the yearly renewal to once in three years which would give brokers ample time to prepare ahead of renewals.

Okunoren advised the regulatory agency to exercise its statutory responsibility by making public the list of practitioners who have satisfied their renewal requirement as they are cleared by the Commission.

The Commission, through a circular, said, an insurance broker whose licence had lapsed and wishes to re-register under the same name should submit a Letter of Appeal stating reasons why the last licence lapsed and payment of non-refundable fee (N250,000.00) for processing of the appeal.

Moreover, it charged the intending broker to equally submit application for re-registration, adding that if appeal is sustained by the commission, such interested broker must pay  application fee of N250,000, submit Certified True Copy of CAC’s Forms C02 and C07, Evidence of payments of the fee and payment of all outstanding ISS levies due before the license lapsed.

Other requirements listed in the circular included: Nomination of qualified CEO and Executive Management for NAICOM’s approval; Submission of a Management Account/Statement of Account as at the last day of last month of the period since the last approved account and apply for NAICOM’s approval of the Members of the Board of Directors.

NAICOM pointed out that there would be re-registration inspection of brokers to determine non-violation of the Insurance Act and payment of penalties for identified violations/non-compliance, while the interested broker is to attend and be successful at the re-registration interview.