Registered Insurance Brokers wants compulsory insurance for Nigerians

Registered Insurance Brokers wants compulsory insurance for Nigerians

The Nigerian Council of Registered Insurance Brokers has written to the House of Representatives, asking the parliament to amend laws towards making insurance compulsory for Nigerians and their property.

The NCRIB also urged the House to accelerate passage of national budgets, which would lead to timely payment of premium on insurance services provided for the Federal Government’s workers and assets.

The Deputy President, NCRIB, Dr Bola Onigbogi, presented the petition addressed to the Chairman, House Committee on Insurance and Actuarial Matters, Mr Darlington Nwokocha, in Abuja on Wednesday.

In the petition, a copy of which our correspondent obtained, the council called on the lawmakers to conduct regular and periodic review of the laws on insurance to make them conform with developments globally.

The council said, “The existing insurance laws had made provision for some compulsory insurances and they include third party motor insurance, insurance of building under construction, insurance of public building, etc. However, the mode of enforcement and the agencies saddled with the responsibility of enforcement of these insurances were not provided in the law.

Insurance industry recapitalisation ’ll reshape brokerage business

The Nigerian Council of Registered Insurance Brokers has said the recently announced recapitalisation exercise for Nigerian insurance companies will impact how insurance brokers will place their businesses going forward.

It said the recapitalisation exercise would increase the industry’s capacity to underwrite transactions in key sectors of the economy.

The National Insurance Commission had in a circular announced new capital requirements for operators in the insurance industry. In the circular to its regulated entities, life insurance companies’ capital was raised from N2bn to N8bn, general companies got a raise from N3bn to N10bn, while composite insurance companies’ capital was raised from N5bn to N18bn.

The regulator also increased the capital of reinsurance companies from N10bn to N20bn. NAICOM stated that the commencement date for the circular was May 20, 2019, while the deadline was fixed at June 30, 2020.

Registered Insurance Brokers wants compulsory insurance for Nigerians
Registered Insurance Brokers wants compulsory insurance for Nigerians

Speaking in an interview on the sidelines of the NCRIB members evening sponsored by Linkage Assurance Plc in Abuja, the Chairman, Abuja Area Committee, NCRIB, Mr Omoladun Lateef,  said while the move  was targeted at insurance companies, it would affect the whole industry.

Read: Should all Nigerian athletes get health insurance?

“What we brokers will do is to examine the books of the insurance companies’ and from their books, we will know those who will easily scale through the recapitalisation because it is a reality.

“We will look at the type of business to give a company who might be consumed by another company, or merged with another. We will tread cautiously to protect ourselves and protect our clients as well. But we know many of the insurance companies will make it,” he said.

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