By ROSEMARY ONUOHA
The Nigerian Council of Registered Insurance Brokers, NCRIB, has warned insurance brokers who are in the habit of cutting rates to desist from such act as henceforth the Council will no longer defend them. President of the Council, Mr. Ayodapo Shoderu, who made the assertion at the brokers members evening held at its Secretariat in Lagos last week, stated that the act of such brokers have continued to cause ethical brokers to lose genuine businesses.
Shoderu said, “The Council has continued to receive an avalanche of complaints about some ethical brokers losing businesses to those who continually cut rates or quote uneconomic rates. This is killing to the brokerage profession and must be condemned in its entirety. It is the intention of the Council to continually promote high ethical standards.
“It will be most difficult for the Governing Board henceforth to defend any member that violates the law or directive on insurance broking operation. To be fore warned is to be fore armed.” Shoderu lamented that the trend has continued to affect the operations of insurance brokers. He said the leadership of the council last year visited the Commissioner for Insurance who warned brokers that indulged in collecting overriding commission from insurance companies to desist from the act, warning that NAICOM will not hesitate to sanction such unethical players.
He however said that the council will discuss more intensively with the Nigerian Insurers Association, adding that the forum should be a good platform to initiate steps towards upward review of the existing brokerage commission. On Financial Reporting Council (FRC) compliance, he said the council had held several previous meetings with FRC with directives on International Financial Reporting Standards (IFRS), as applicable to insurance brokers.
He noted that the Council has again received a letter from the FRC directing that all brokers submit their accounts 15 days from now, without fail, urging members that has issues with complying to liaise with the Secretariat which will in turn facilitate assistance through IFRS Sub Committee which mandate is to help members having challenges of compliance.