NAICOM to review guidelines for brokers, agents licensing

The National Insurance Commission (NAICOM), has said the deadline for brokers to activate their lapsed licences, would be issued this week.The Commissioner for Insurance, Mohammed Kari, who said this in an interview with The Guardian in Lagos, said the window given to brokers to acquire new licences in their old names was for a short time.

He said the Commission will come up with reviewed guidelines on intermediaries like brokers, agents and other forms of insurance distribution channels in Nigeria.“The window given to the brokers with lapsed licences is not a perpetual window. It is just for a period. Already, the group of intermediaries have readjusted themselves. They now apply long before time. Most of them now get their licences renewal by the expiring date. The issue of lapse is becoming a history.

“They have been abusing the little privileges given to them for a short time, but it is not indefinite, we will come up with a definite date, when we stop activating lapsed licences. We are coming up with reviewed guidelines on intermediation generally for brokers, agents and other distribution channels. I hope we will get them out by the end of the month,” he said.

Although, the brokers and agents are jittery over the new guidelines, but those affecting their operations spoke with The Guardian declined to comment on the matter, claiming that they have no clue about the review.

One of the agents who spoke in confidence, said: “The government may decide to review the guidelines, if they think there is need for it. But I am afraid, if they will not introduce something that will threaten our business. We will wait and see but i hope it is to promote the business.

Recall that in December 2015, NAICOM published the names of 108 insurance brokers for failing to meet the regulatory requirements in the national dailies.Majority of the erring firms were sanctioned for violating certain provisions of the insurance law, such as late submission of their returns to the regulatory body, while some did not even submit returns for several years, non-renewal of operating licence, among other offences.

When the companies’ names were published, the Commission said they will not be allowed to renew their operating licences, while those who are still interested in the insurance industry will be asked to apply for a fresh licence.