The number of insurance brokers operating without valid licence has been reduced, the Commissioner for Insurance, Alhaji Mohammed Kari, has said.
He said this during the national conference of the Nigerian Council of Registered Insurance Brokers in Abuja.
He said, “In recent times, the National Insurance Commission has increased its oversight function on the activities of operators of this industry. The effort is already yielding positive results. In years past, more brokers operated without valid licence than those with licence. Today, the story is different. We hope to sustain this good development and will also introduce additional distribution channels to improve penetration.”
The commissioner also said that the task of the insurance brokers should go beyond the collection of premium, claims’ cheques and rewarding of renewal notices.
He said that conscious efforts should be made by the brokers to bridge the information and knowledge gap between the provider and the consumer.
According to the commissioner, the future market belongs to the broker who has worked hard enough to secure the trust and loyalty of the consumer today.
The commissioner, who noted that insurance sector would benefit the economy only when high penetration was achieved, said high penetration could not be achieved when most providers concentrated their operations on the commercial cities of Nigeria.
He said, “Many local governments (and even some states) are without the presence of any insurance institution. This provides all the space the so-called quarks need to shine.”
Kari said the brokers could enter into partnership with insurance companies to represent their interest in up country locations.
He also said that the practice of all brokers chasing the so-called “juicy” government accounts should be discouraged because it was not helping the growth of the industry, while at the same time it had attracted unpalatable publicity