NCRIB warns members on business deals with weak insurers
The Nigerian Council of Registered Insurance Brokers (NCRIB) has called on its members to be wary of where they place their business to ensure the protection of image of brokers in the entire insurance industry.
NCRIB President, Shola Tinubu, who gave the warning at the monthly Members’ Evening in Lagos, stressed that news have been making rounds that some brokers still indulge in placing businesses with companies that are challenged and may have difficulty in paying claims when losses occur.
This should be watched, he said, adding that as critical stakeholders brokers would be watching as the implementation of the directives on recapitalisation unfold.
He noted that Insurance Brokers cannot shy away from the fact that the directive on recapitalisation will adversely affect the entire industry, stressing that as a proactive Council, the body is critically examining the implications and possible solution to the effect the implementation would have on members.
“It is no more news that the National Insurance Commission (NAICOM) has jerked up the minimum paid-up capital of insurance companies in Nigeria.
“The new capital base required that that companies that want to remain in Life Business should raise their minimum paid up capital base from N2 billion to a minimum of N8 billion; General Insurance Companies from N3 billion to N10 billion, Composite Insurance Companies from N5 billion to N18 billion, while Re-Insurance Companies will require a Paid Up capital base of N20 billion from N10 billion.
“However, on a personal note, I would like to enjoin my professional colleagues to be wary of where you place your business for the protection of image of brokers and that of the Council. News have been making rounds that some Brokers still indulge in placing businesses with companies that are challenged and that may have difficulty in paying claims when losses occur.
“This should be watched! As critical stakeholders we would be watching as the implementation of the directives unfold before us,” he said.
He commensurated with the families of fallen insurance icons –former Commissioner for Insurance, Chief Oladipo Bailey; former Director-General, Nigerian Insurers Association, Prof. Funmi Adeyemi and Deputy Director-General of Chartered Insurance Institute of Nigeria (CIIN), Mrs. Uju Ndubuisi-Chukwu.
Tinubu noted that the Council would join other industry operators in burial arrangements for the departed professionals and sought cooperation from brokers in this regards.