The National Insurance Commission (NAICOM) has revealed that it has plans to release the new distribution channel guidelines called the State Insurance Producer (SIP), the Commissioner for Insurance, Mohammed Kari, who disclosed this on Thursday at the Chartered Insurance Institute of Nigeria (CIIN) 2018 Education Seminar in Ibadan, Oyo State.
He said the operational guideline shall come into effect on January 1, 2019 and that to complement the SIP policy; the commission will be opening 20 new branch offices in the states across the nation with each Geo-political zone getting four branches each.
Kari noted that that the SIP will be an agency of a state government licensed by NAICOM to provide intermediary services as defined by the guideline issued by the commission and also remunerated as by the provisions of the operational guideline.
He said the key responsibilities of SIP include, facilitating the sale of the compulsory classes of insurance within the state jurisdiction and all classes for its principal’s insurance and that additional services and products would be considered in the future, depending on the success of the initial.
Other duties according to him are, exercise on defaulters the power to penalise them according to the laws of the states and maintain proper records of individuals and organisations bound by the requirements of the compulsory classes of insurance and monitoring the compliance.
The Commissioner posited that once licensed, the SIP shall enter into Memorandum of Understanding (MoU) as may be sanctioned by NAICOM with approved insurance companies in its jurisdiction for the purpose of placement and management of insurance business with approved insurers that have branch offices in the state.
Highlighting the benefits accruable from the SIP initiative, he maintained that it would help to meet the government’s expectations with regards to Economic Recovery and Growth Plan (ERGP) in the area of job creation, poverty prevention and confidence in the face of risks.
Other benefits are, answer to the saturation in the corporate segment, improve the image of the insurance industry and brand building for individual insurance institutions.
The NAICOM boss said insurance plays a pivotal role in financial inclusion as it reduces poverty line, help people to manage their risk and protect them from negative adverse effect of any unforeseeable circumstances and increase access to other financial services.
The Governor of Oyo State, Senator Abiola Ajimobi, commended the CIIN for educating insurance practitioners and urged insurance operators to deal with the issue of negative perception people have about insurance; develop quality services and superior value to customers; introduce minimal premium and tackle the menace of quacks and fraudulent practitioners.
He further revealed that the state has resolved to set up a Global Micro Insurance agency that will be private sector-driven.
