BusinessDay... the voice of business: NAICOM reviews insurance broker’s fees

NAICOM reviews insurance broker’s fees
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MODESTUS ANAESORONYE AND GLADYS ONWUKWE on 01 May, 2008 02:00:00
 
Insurance industry regulatory authority, the National Insurance Commission
(NAICOM) has reviewed the fees payable by insurance brokers in the country,
being one of its strategies to sanitise the industry and raise the operation of
brokerage business.
In the review, licensing fees has been increased from initial N50,000.00 to
N200,000.00; licensing renewal fees moved from N25,000.00 to N100,000.00;
statutory fees increased from N25,000.00  to N100,000.00 while registration fees
by new members is now N25, 000.00.
The review which was agreed after series of meetings between the NAICOM and the
executive members of the Nigerian Council of Registered Insurance Brokers
(NCRIB) followed the promise by the Commission to raise the standard of
insurance brokerage that could compete favourably with other financial service
sectors.
Jide Aminu, executive secretary NCRIB to BusinessDay that the commission with
this new increase has pledged to improve its services and supervision on
insurance brokers to enhance the overall growth of the industry.
A source at NAICOM revealed that with the new fees the number of operators
would reduce, so that it would no longer be business for every body. According
to the source, the intention is to see that only serious players do the
business, unlike what we have had.
Those brokers that have their offices in a hand portfolio or inside their
bedroom would not be able to pay the fees or renew their licences any longer.
Dede Ijere, president of the Council disclosed the review at the April Edition
of the NCRIB Members Evening sponsored by Consolidated Hallmark Insurance Plc
which took place in Lagos.
He said that NAICOM has taken decisive steps to sanitise the practice of
insurance broking by reverting to the law with respect to registration and
licensing of insurance brokers.
According to him, the Commission has made it mandatory for all intending
brokers to have their names in the register of NCRIB as a precondition to
obtaining their licenses from NAICOM.
This situation he said has sent an ominous signal to unethical players that the
days are gone in the industry when fake and unregistered operators would be
doing businesses to the detriment of the image and reputation of the industry.
Ijere noted that the present NAICOM and NCRIB have come to terms on the need
for the industry to collaborate and be united especially on the issue of common
interest.
Expressing his happiness on the new relationship existing between both bodies,
he said “it is a thing of joy that the hitherto moribund technical committees
of the two bodies have been re-energised with meetings held regularly to resolve
issues of common interest.