NAICOM withdraws guidelines for state insurance providers

National Insurance Commission (NAICOM) on Thursday withdrew guidelines for the proposed State Insurance Producer (SIP).

Nigerian Council of Registered Insurance Brokers (NCRIB) had engaged in serious lobby for the withdrawal and cancellation of the guidelines.

NCRIB President, 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.

At a meeting held in Lagos on Thursday, officials of NAICOM and NCRIB agreed to set up an ad-hoc committee that will help ensure the parties remain on the same page in making policies for the broking sector.

Insurance sources told Nigerian Tribune that brokers at the meeting demanded immediate withdrawal of the SIP guideline which they considered inimical to their operations.

The source noted that the NCRIB, has also made a recommendation to NAICOM on how to effectively deepen the sales of compulsory insurances.

It was also agreed that the commission will properly examine the recommendations of the  committee before deciding on the next line of action on the proposal.

In addition. NAICOM will adequately communicate its decisions on the matter to NACRIB members before the proposed commencement date for the policy.