NAICOM says new insurance distribution channels will boost efficiency
National Insurance Commission (NAICOM) says the new distribution channels for the sale of insurance products will facilitate the reform of the insurance industry and boost its efficiency.
Rasaaq Salami, Head Corporate Affairs of NAICOM, said this in an interview with News Agency of Nigeria in Lagos on Thursday, while giving an update on the initiative which was introduced on Dec. 7, 2016.
“This development came on the heels of the Central Bank of Nigeria’s rejection of the idea of NAICOM licensing banks that want to retail insurance products.
“This made the commission, in August 2016, to ban the use of alternative distribution channels in the sale of insurance products in Nigeria,’’ he said.
Salami said that the new channels would restructure the insurance sector for effectiveness by enhancing insurance penetration in all states of the country.
“We know that the distribution channels of insurance products are brokers, agents and insurance companies.
“Other segments like the Nigeria Bar Association (NBA), Nigerian Stock Exchange (NSE) will act only as referrals, they won’t sell the products,’’ he said, adding that the step would help deepen insurance penetration in the country.
Salami said that NAICOM was appreciative of the full support of stakeholders in efforts to close the existing insurance gaps in the country so as to enhance insurance penetration.
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