The National Insurance Commission (NAICOM) has withdrawn and cancelled the State Insurance Producer (SIP).
NAICOM stated this in a circular signed for the Commissioner for Insurance, by the Director, Policy and Regulation, Agboola Pius, entitled, Withdrawal of circular on State Insurance Producer Operational Guidelines, with reference number, NAICOM/DPR/CIR/20/2018 December 20, 2018 and sent to all insurance institutions.
The circular reads: Pursuant to the powers conferred by the enabling laws, the Commission hereby withdraws and cancels the Circular dated November 19, 2018 with reference number NAICOM/DPR/CIR/17 /2018 and titled “Operational Guidelines on State Insurance Producer”.
NAICOM stated that the withdrawal and cancellation takes immediate effect.
Reacting to the withdrawal and cancellation of the guideline, the Nigerian Council of Registered Insurance Brokers (NCRIB) expressed its appreciation to NAICOM for the magnanimity in withdrawing the guideline, stating that it will lead to the much desired progress and cohesion required for the industry’s growth.
Earlier, NAICOM and NCRIB after a meeting set-up an ad hoc committee to review the SIP guideline.
NAICOM had earlier released the SIP guidelines, which it planned to commence January 1, 2019 and pegged the operational licence at N2 million.
NAICOM simplified the payment process of the licensing fee by allowing the SIP pay from the first commission earned, a step taken to free state governments from financial burden in getting the licence.
NAICOM, in the guidelines, stated that there will be a signed undertaking by an officer of the State Government not below the rank of a Permanent Secretary that the state undertakes and agree that the sum N2 million be deducted from accrued commission to be earned by the Licensed State Insurance Producer before payment of commission is made to the coffers of the Government.
The Commissioner for Insurance, Mohammed Kari, had earlier said, SIP business model will bring about 200 to 300 per cent insurance penetration in two years. He said the initiative will increase the revenue base of state governments and insurance profits.
Highlighting more on 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.