Brokers Are Wreaking Havoc On Our Industry —Shareholders’ Scribe

Posted by African Examiner Business News, Insurance Thursday, March 13th, 2014

By Kayode Adelowokan, Lagos

Independent Shareholders Association of Nigeria (ISAN) has said that insurance Brokers in the country have done more harm to the credibility of the industry in the time past but lauded the policy of ‘No premium, No cover’ of the National Insurance Commission (NAICOM).

ISAN General Secretary, Mr. Adebayo Adeleke, said this at the 2013 Nigerian Insurance and Pension award with the theme: “unlocking microinsurance business” organized by Inspenonline media on Wednesday at Muson centre, Lagos, that there is need for stakeholders in the industry to begin to look at how to clean the confident of an average Nigerians as far as insurance is concerned.

Though, Adeleke, said things are changing even with presence of ‘No premium, No cover’, that the industry might likely see a lot of people fading out of insurance broking business and those who are genuinely committed to insurance broking business will remain.

In his word, “One of the best ways of ensuring that you maintained the position of leadership is to constantly evaluate what you do. The critical issue about the insurance industry today is credibility, and I want to believe the cooperate managers in the insurance sector and all stakeholders will begin to look at how to regain the confidence of an average Nigerians as far as insurance business is concerned.

“The Cooperate managers in the insurance sector should also start to think of less illegality and more about service. I believe the industry Managers will do more to train the insurance marketers that the reference should move away from sumasured, desumasured to the benefit that the insured is likely to get.

“Also, for us to do the bigger tickets as far as insurance industry is concerned, we are likely in the couple of years to come, to see a lot of mergers in this industry so that it can produce synergy for us to have the capacity to do the big time business.”

The General Secretary of Independent Shareholders Association of Nigeria (ISAN) however said, “There is something that is worrisome to some of us who are investors in capital market and as we all know that one of the critical aspect of insurance is life; we want to preserve life and ensure that life goes on even with many uncertainties. Let me place on record that there shouldn’t be a next of killers within the insurance industry.”

In a shift reaction, the President of the Nigerian Chartered Registered Insurance Brokers (NCRIB), Mr. Ayodapo Shoderu, claimed down on the statement, stating that brokers have contributed immensely to helping the industry correcting its bad image.

According to Shoderu, “As the President of NCRIB, I must disabuse the mind of who made that statement. In fact, Brokers have contributed to a great deal in helping the public because they also help to correct the bad image of the Nigeria Insurance industry. People now know what we do to insurance industry; we are the only arm of the industry who have always shouldered the responsibility.”

Today, we now have a good cooperation going on between the underwriters and Brokers mainly to correct the public image of what the people have heard about the insurance in this country.

The number one broker however expressed concern that insurance industry in the country still have a long way to go but expressed believe that the partnership will help in correcting the bad image so that the benefits in microinsurance business.

Reacting to the comment of NCRIB President, Chairman of the occasion and President of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, urged the council boss to use every opportunity to at his disposal to continue to clean up the system, as there cannot be 100 per cent good brokers in the system.

“We have heard brokers that would continue to portray the good profession in very bad shape. You don’t have to be annoyed rather, you need to take home one thing, that there have been a challenge to the brokers”, he said.

ISAN boss maintained that ‘No premium, no cover’ rule came as a result of deceitful brokers operating in the insurance industry.

Sir Sunny Nwosu, however charged all the awardees to go back to their respective companies and be a good ambassador of the insurance industry and work harder to create more confidence for shareholders who have invested in insurance companies.

“We are really not happy, go and look at the sector, they all remain one naira less and there are receivables mounting up every day.”