Brokers Plan To Control 90% Stake In Insurance Business


Mar 10, 2023

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Insurance brokers, under the auspices of the Nigerian Council of Registered Insurance Brokers (NCRIB), are ready to increase their controlling stake in insurance business from 60 per cent to 90 per cent in the nearest future.
The Nigerian Insurers Association (NIA) had earlier said, the insurance brokers facilitated 60 per cent of businesses in the insurance sector in the last financial year.

Speaking at the NCRIB Secretariat in Yaba, Lagos on Wednesday, when members of the Insurance and Pension Editors of Nigeria(IPEN) paid a courtesy vist to the council, the executive secretary/CEO, NCRIB, Mr. Tope Adaramola said, though brokers have been an active intermidiary in the insurance value chain over the years, the brokerage fraternity wanted to further increase its participation in the sector to 90 per cent.

Urging individuals and corporates to channel their risk underwriting through registered brokers who would properly advise policyholders on the right cover for their risks,he added that, registered brokers are in a better position to interpret the terms and conditions of insurance policies to policyholders to know ahead, what their policies cover and exemptions.
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He promised that NCRIB, as a body of insurance brokers, will not relent in its efforts to increase stake in the industry through its awareness programmes across the six geopolitical zones of the country in a bid to enhance insurance penetration, adoption and acceptance in the country.
He pledged the council’s support to the plight of IPEN, believing the industry needs more players in the area of advocacy to increase acceptance and contribution to the nation’s Gross Domestic Product (GDP).
“I have listened to your president reeling out the lofty plans of the group to increase insurance and pension penetration through developmental journalism and I must confess, they were all new and laudable initiatives that, when well implemented, will turn around the fortune of the insurance industry.”
He said the goal of the new association and the council gel in the area of advocacy, urging IPEN to see NCRIB as a partner in progress and should not hesitate to call upon the council when the need arises.
Similarly, the assistant executive secretary(AES), NCRIB, Mr. Falade Olugbenga Adedayo, while emphasising on the need for Nigerians to patronise brokers for their insurances, stated that, insurers do not have full cover for some emerging risks, especially, those categorised as political risks because of the magnitude of the loss, hence, could only be mitigated through extension cover which registered brokers can appropriately advise intending policyholders on the right extension to procure.
Citing an instance of the recent destruction of banks’ assets across the country due to scarcity of naira, he noted that, this is classified under political risks which are only covered as an extension to Fire and Burglary insurance policy, noting that, any of the banks who didn’t employ the service of the brokers may not have been properly advised to take extension of cover to underwrite this risk and could be losing a lot in this regards.
Earlier, the president of IPEN, Mr. Chuks Udo Okonta promised the council that his members have lots of initiatives in the kitty to complement the efforts of insurance industry regulator, associations and operators in their move to increase insurance contribution to the nation’s GDP.
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He said, the visit was necessary to convey the plans of the new group to the council and to solicit NCRIB’s support that will be crucial to the IPEN’s plight in rebranding the image of both insurance and pension industries through adequate reportage of activities in both sectors.

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