By Favour Nnabugwu

Former Minister of State for Finance, Dr Remi Babalola  has urged the Nigerian Council of Registered Insurance Brokers (NCRIB) to stop unregistered brokers from grabbing government business and other large accounts only to dent the image of the sector in the process.

Also, warning insurance brokers to stop jostling for government risks and focus on untapped areas, the National Insurance Commission (NAICOM) charged brokers to expand to new avenues.

Babalola at the NCRIB conference and exhibition in Abuja, theme: The Future Today: Insurance Industry and National Rebirth, told genuine insurance professionals to map out ways of stopping unregistered brokers from invading the sector

He charged that only the operators in the sector could address and correct the bad image hovering on the sector by uprooting the bad eggs from the sector.

He said, “The real professionals should not allow such brokers who rush for registration just for the government and other big business they want to get. You must put a stop to such brokers. During my tenure as the Minister of State for Finance, we were aware that the law of ‘No Premium No Cover’ was in existence but it was not enforced then and we had problem of brokers collecting premium and not remitting to insurance companies. It was indeed a problem at that time.”

Amplifying the assertions of the former Minister, the Commissioner for Insurance, Alhaji Mohammed Kari condemned the die-hard desperation of brokers to government businesses and other large risks while leaving a lot of untapped areas yet covered.

Kari said, “The practice of all brokers chasing the so-called “juicy” government accounts should be discouraged. It is not helping the growth of the industry, while at the same time it has attracted unpalatable publicity.”

He said operators need not be fighting over a basket of big account but should rather spread their tentacles wide enough to cover virgin areas.

He added, “The insurance sector will benefit the economy only when high penetration is achieved. I dare say that high penetration cannot be achieved when most providers concentrate their operations in the commercial cities of Nigeria.”

“Nigerian market remains huge and largely untapped. We do not all have to operate in the cities or follow corporate accounts, there is more in selling personal-line or retail business using modern technology.”

He said that Insurance Broker should go beyond the collection of premium, claims’ cheque (where applicable) and forwarding of renewal notices. Conscious effort should be made by  insurance broker to bridge the information and knowledge gap between the provider and the consumer.”

“The future market will certainly belong to that broker who has worked hard enough to secure the trust and loyalty of the consumer today, he said.”

The Insurance Commissioner said, “Many Local Governments (and even some states) are without the presence of any insurance Institution. This provide all the space the so-called quarks need to shine. This obviously does not help the penetration of insurance in the country and does not promote future growth of the industry.”

The CFI told the gathering that the Commission would not tolerate any aberration from operators in the sector. “High professional ethics, moral standards and discipline is expected of professionals and that is what we must give to gain that professional respect. We have to take the bull by the horn and exorcise the bad spirit within us.”

While welcoming insurance operators to the conference, the President of the NCRIB, Mr Kayode Okunoren implored the brokers to ensure that they employ sufficient manpower that would do the job in tandem with ethics of the profession.

He said, “Insurance brokers have a role to play in ensuring that we help to achieve President Muhammadu Buhari’s Change project. The ‘Change begins with me’ is a way of re-orienting the minds of Nigerians that things must do things the right way.”

Okunoren admitted that the effort of operators in the sector to garner and retain the trust and confidence of clients was about to be trashed with allegations of fraud, among others, noting that the industry should endeavour to erase it totally.“

“The insurance industry today is dotted with challenges that we must not allow to be repeated.”