NAICOM to release guidelines for reactivation of brokers’ lapsed license

NAICOM to release guidelines for reactivation of brokers’ lapsed license

LIB Insurance News

The National Insurance Commission (NAICOM) has said it will at the end of this month, release the guideline for brokers to activate their lapsed licenses.

This is as it said it has commenced the process of signing agreements with operators and regulators of insurance distribution channels for collaboration in deepening insurance penetration nationwide.

The Commissioner for Insurance, Mohammed Kari, who disclosed this in an interview, said the commission is working globally on enforcement of all compulsory insurances and has perfected plans to release guideline on the use of non-regulated potential intermediaries in the distribution of insurance.

The commission, had mid last year, suspended the use of non regulated distribution channels in selling insurance, insisting that if such channels like banks will be used for insurance distribution, they must be license for such purpose by the commission; a situation, which the Central Bank authority resisted.

Since then, use of banks in insurance selling was put on hold just like use of mobile network operators.

NAICOM, in place of these, came up with alternative channels of distribution and those it referred to as referrals which include stock brokers and lawyers.

But the Insurance Commissioner, said that the commission, has signed agreement with the Central Bank of Nigeria, Telecom operators, National Pension Commission among others for their participation in insurance distribution process.

On brokers, the commissioner, said the window given to brokers to acquire new licences in their old names was for a short time.

He said the commission is coming up with reviewed guidelines on intermediaries like brokers, and distribution channels.

“The window given to the brokers with lapsed licenses is not a perpetual window. It is just for a period. Already, the group of intermediaries have readjusted themselves. They now apply long before time. Most of them now get their licenses renewal by the expiring date. The issue of lapse license is becoming a history.

“They have been abusing the little privilege given to them for a short time, but it is not indefinite, we would come up with a definite date, when we would stop activating lapsed licenses because we are coming up with reviewed guidelines on intermediation generally, on the brokers, agents and other distribution channels. I hope we would get them out by the end of the month,” he said.
In December 2015, NAICOM, had published names of 108 insurance brokers for their failure to meet the regulatory requirements.

It was learnt that majority of the firms were sanctioned for violating certain provisions of the insurance law, such as; late submission of their returns to the regulatory body, while some did not submit returns for several years, non-renewal of operating license, among other offenses.

The commission had said the affected firms would not be allowed to renew their operating licenses, while those who are still interested to continue operating in insurance industry would be asked to apply for a fresh license.

Culled from: TODAY.ng 

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