The National Insurance Commission (NAICOM) and Nigerian Council of Registered Insurance Brokers (NCRIB) have set-up an ad hoc committee to review the proposed State Insurance Producer SIP) guideline which seemed to has since stirred up controversy with its introduction.
Following a meeting which held yesterday in Lagos, the parties also agreed to inaugurate a platform tagged, Brokers’ Committee, which will help ensure the parties remain on the same page in making policies for the broking sector.
According to a top executive of the NCRIB; the brokers had at the forum presented their misgivings about the SIP to NAICOM. He noted that top on the demands made to the insurance industry regulator, is the withdrawal of the SIP guideline which they considered inimical to their operations.
He noted that the NCRIB, has also made a recommendation to NAICOM on how to effectively deepen the sales of compulsory insurances.
A top executive of NAICOM, who was also at the meeting noted that the commission will properly examine the recommendations to the crafted by the committee before knowing the next line of action to be adopted. He noted that the commission will make its resolutions known to the brokers before the proposed commencement date for the policy.
President, NCRIB, Shola Tinubu, had last week said the body had served the NAICOM a 30-day pre-action notice to challenge the policy in court, adding that the body had also engaged the services of a legal firm to fight the course.
According to him, the said SIP is a massive threat to broking business, especially, as 70 per cent of brokers businesses come from government, an aspect that SIP is intended to serve.
“In view of this, we have appointed a Legal firm consisting of three Senior Advocates of Nigeria SAN) and would be engaging NAICOM on our behalf. Our lawyers have already served NAICOM, and in view of this notice, we can have dialogue. This is to protect the interest and businesses of insurance brokers,” he said.
If the policy is allowed to take effect, he said, it would create crisis in insurance broking profession as well as insurance industry, noting that, the brokers will resist any action that will allow non-professionals hijack 70 per cent of brokers’ business. The legal case, he pointed out, would ensure that the issue is pursued to a logical conclusion.
Earlier, a group, Transparent Protection Ltd./Gte (TPL) had also indicated its intention to challenge NAICOM in Court over the Guidelines by which it sought to create Corporate Insurance Agents in the various States of the Federation.
