NAICOM to partner stockbrokers in insurance distribution

By Maduka Nweke

Apparently determined to take insurance to all nooks and crannies of the nation, the National Insurance Commission (NAICOM) has concluded plans to use stockbrokers at the Nigerian Stock Exchange (NSE) as distribution channel.
The commission, in continuation of efforts at deepening insurance penetration in the country, last week, paid a working visit on the Director General, Securities and Exchange Commission (SEC), Mr. Munir Gwarzo, to intimate him of the need to engage stockbrokers as referral agents in the insurance distribution channel.
Deputy Director, Authorisation and Policy, NAICOM , Mr. Leonard Akah, who led the delegation outlined the role of stockbrokers in the sale of insurance products as being limited to referral partners/agents to insurance companies without being exposed to any risk.
According to him, the stockbrokers would earn a percentage commission on any business they are able to generate to the insurance company. This initiative, he said, is expected to create opportunities for the stockbrokers that are interested without distracting them from carrying out their core functions.
Akah added that the draft guidelines to ensure seamless operation of the initiative would be sent to SEC for input before the final exposure.
In his response, Gwarzo, represented by Mr. Isyaku Bala Tilde, Head, Monitoring Department, lauded NAICOM for the initiative and promised to collaborate with it to ensure its smooth execution.
NAICOM had also identified various other professionals for consideration in the referral agency model. These include accountants and lawyers, among others.