NAICOM fixes January to release new insurance distribution guidelines
The National Insurance Commission (NAICOM) is set to release a new insurance distribution channel guidelines for operators of insurance business in the country come January.
The guidelines which is known as the State Insurance Producers (SIP), according to the commission is in furtherance of its policy to diversify insurance distribution in Nigeria.
Disclosing this at the 2018 education seminar organised by the Chartered Insurance Institute of Nigeria (CIIN) in Ibadan, Oyo State, the Commissioner for Insurance, Mohammed Kari, said the SIP, would serve as an alternative channel for insurance distribution.
“The SIP will be an agency of a state government licenced by NAICOM to provide intermediary services as defined by the guideline issued by the commission and also remunerated as by the provisions of the operational guideline.
“The operational guideline has already been concluded and shall come into effect on January 01, 2019,” he stated.
Kari, listed the key responsibilities of the SIP as facilitating the sale of the compulsory classes of insurance within the state jurisdiction and all classes for its principal’s insurances (state government);
He said additional insurance services and product would be considered in the future, depending on the success of the initial approach.
He noted that it will help in exercising on defaulters, the powers to penalise them according to the laws of the states, maintaining proper records of individuals and organisations bound by the requirements of the compulsory classes of insurance and monitoring the compliance.
He said the SIP shall only transact insurance business with approved Insurers, noting that only insurance companies with branch offices in the respective states would be eligible to transact business with the SIPs and that “Once licenced to operate by the commission, the SIP shall enter into a memorandum of understanding as may be sanctioned by NAICOM, with approved insurance companies in its jurisdiction for purposes of placement and management of insurance business within the state.”
