NAICOM takes war on illegal insurance operators to states

The National Insurance Commission (NAICOM) has advised state governments in unholy union with unlicensed underwriting and insurance brokers to issue fake insurance policies to unsuspecting public to withdraw their support immediately.

The Commissioner for Insurance, Mohammed Kari, in a keynote address at the 2016 yearly chief executive officers retreat of the Nigerian Council of Registered Insurance Brokers (NCRIB) in Ilesha, Osun State, said “it is a matter of regret that we sadly found all sorts of under the table arrangements where insurance policies are being offered in conjunction with various state governments to unsuspecting public.”

According to him, beside the fact that the industry losses may run into billions of naira, the worse is that the public who patronize these illegal arrangements cannot claim indemnity for their insurances.

Kari said: “While the newly formed insurer’s committee has set up various sub-committees to look at the issue of penetration and other issues in the market, the commission is complementing those efforts by expanding its enforcement of compulsory insurances down to the states level. In the process we sadly found all sorts of under the table arrangements where insurance policies are being offered in conjunction with various state governments to unsuspecting public. Sometimes with registered brokers and in most cases with unregistered and unlicensed entities.

“This is illegal, criminal and punishable under the laws of the country. Brokers and underwriters alike should beware as we have beamed our searchlight to that direction. Unrepentant companies and individuals that are engaged in these schemes face the consequences.”

He told the brokers that the task of market development is everybody’s, however, it is the trend to quiz the regulator why market penetration is low. Penetration would continue to be low if everyone would only operate from the comfort of the metropolis or chase only existing clients with insurance policies.

“The poor penetration of insurance in the country is no more a new statement or information. It is a position we all certainly cannot be proud of, what should be done in this ugly situation is the issue. Developing a robust insurance sector in any country requires developing a good strategy on insurance penetration.”