Following the recent recapitalisation of insurance industry into three tiers by the National Insurance Commission (NAICOM), insurance brokers, under the auspices of the Nigerian Council of Registered Insurance Brokers (NCRIB) has set up relevant Committees in motion to see the extent to which the new policy thrust would affect insurance brokers in the country.
This was made known by the president of NCRIB, Mr Shola Tinubu, during the third quarterly press briefing of the council in Yaba, Lagos, recently.
NAICOM’s new capitalisation system, he stressed, is a partial introduction of the risk-based capital model in a three-tier recapitalisation system, whereby firms would be graded as tier-three, tier-two and tier-one.
Insurance companies, he said, would be looking at different options to respond before the deadline of January 1, 2019, even as several options would be contemplated by the companies, including the options of injecting capital, mergers and acquisitions.
Whichever strategy chosen, he charged insurers to focus on how to grow the insurance industry as well as how to make insurance relevant in national economy.
“On the part of our Council, we have set relevant Committees in motion to see extent to which this new policy thrust would affect our members as the end consumers have begun to express concern as to the implications for them. Anytime the insurers market goes into flux, the broking sector becomes challenged to guide clients to the best affordable security. NCRIB will support our members through these emerging challenges”, he said.
To chart enduring pathway for insurance brokers and NCRIB as a body, he said, the council has almost concluded its 10 year strategic plan for insurance broking profession.
Meanwhile, the council also lauded the federal government’s Rent-to-Own product designed to enhance affordability by eliminating the need for down payments and other costs associated with normal mortgage loan arrangements. He, therefore, enjoined the federal government to ensure that in embarking on this laudable feat, insurance should be given its rightful place.
“Section 64 & 65 of Insurance Act 2003 stipulates a Compulsory Insurance for ongoing construction projects. It therefore urged the FG to insist that appropriate insurance policies be in place for these houses at the construction stage, and for the win-win benefits the project holds for government, the allottees and their families”, Tinubu said.
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