The Nigerian Council of Registered Insurance Brokers (NCRIB) has expressed concern that the ongoing recapitalisation exercise recently initiated by the National Insurance Commission (NAICOM) may be extended to its members.
NCRIB president, Mr Shola Tinubu, who stated this at the quarterly press briefing organised by the council in Lagos recently, said the tier-based system was not necessary for brokers since they are professional firms and not risk carriers.
“Currently we are concerned that the guidelines may be seeking to tier brokers which is not 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.
He expressed appreciation to NAICOM for the opportunity to make their input to the zero-draft guideline being implemented in the sector.
“The leadership and membership of the NCRIB appreciate NAICOM for the opportunity to make input to the zero-draft guideline. The guidelines are currently being reviewed by the technical and legal committees of the NCRIB for our final input.
“We believe that if our suggestions and input are favourably considered, the commission will definitely come out with a more robust and acceptable document for all stakeholders,” Tinubu said.
Also speaking, NCRIB Treasurer, Mrs. Ekeoma Ezeibe, said the zero-draft guidelines would not disrupt the business of insurance brokers.
Ezeibe said the guidelines stated that for the corporate insurance brokers who are interested in oil and gas business, their professional indemnity cover would be a minimum of N100 million, whereas for partnership insurance brokers, their cover is less than that.
“The guidelines didn’t state that partnership insurance brokers cannot participate in oil and gas business, they can participate only if they beef up their professional indemnity cover to N100 million.
“The guidelines also stated that if you are a corporate insurance broker, you must have branches in all the six geo-political zones in the country. It doesn’t have that requirement for partnership insurance brokers, but then, it didn’t say if you are a partnership insurance broker, you cannot have branches in all the six geo-political zone.
“The N100 million is not for recapitalisation of insurance brokers, it is for professional indemnity.”
According to Ezeibe, professional indemnity is an insurance policy that all professionals carry in order to protect themselves and their practices against handling the affairs of their clients negligently.