NAICOM turns to stockbrokers for insurance distribution

In its continuous effort at deepening insurance penetration and acceptance in the country, the National Insurance Commission (NAICOM) has visited the Director- General, Security and Exchange Commission (SEC), Munir Gwarzoto, to intimate him of the need to engage stockbrokers as referral agent in the insurance distribution channel.

Deputy Director, Authorization and Policy NAICOM, Leonard Akah, who led the NAICOM delegation, outlined the role of stockbrokers in the sales of insurance product as being limited to referral partners/agents to the insurance companies without being exposed to any risk.

In return, he said the stockbrokers will earn a percentage commission on any business they are able to generate to the insurance company. This initiative is expected to create opportunities for the stockbrokers that are interested without distracting them from carrying out their core functions.

He added that that draft guidelines to ensure seamless operation of this initiative will be sent to SEC for input before the final exposure.

In his response, the Director-General, represented by Isyaku Bala Tilde, Head Monitoring Department thanked NAICOM for this initiative and promised to collaborate with the Commission to ensure its smooth execution.

In the bid to deepen insurance penetration NAICOM has identified various other professionals for consideration in the referral agency model.

These include Accountants, Lawyers and a host of others.