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NAICOM assures new distribution channels will restructure industry for effectiveness, efficiency

The National Insurance Commission (NAICOM) on Saturday said that the new distribution channels in the industry would help to restructure it for effectiveness and efficiency.

Mr Rasaaq Salami, Head, Corporate Affairs of NAICOM, said this in an interview in Lagos.

The development came on the heels of the Central Bank of Nigeria (CBN)’s rejection of the idea of NAICOM licensing banks that want to retail insurance products.

“This made the commission to precisely in August 2016, ban the use of alternative distribution channels in the sale of insurance products in the country.

NAICOM on Dec. 7, 2016 introduced new distributive channels for the sale of insurance products.

He said the new channels, developed last December, would restructure the industry for effectiveness by enhancing insurance penetration in all states of the country.

“We know that the distribution channels of insurance products are brokers, agents and the insurance companies.

“Other segments like the Nigeria Bar Association (NBA) and the Nigerian Stock Exchange (NSE) will act only as referrals, as they won’t sell the products.

“This giant step by the commission will deepen insurance penetration in the country, ‘’ he said.

Salami said the Commissioner for Insurance and the Chief Executive Officer (CEO) of NAICOM, Alhaji Mohammed Kari, appreciated the full support of stakeholders.

“Alhaji Kari appreciates all stakeholders’ strife at bridging the existing insurance gap in the country, so that insurance could become a household name,” he said.

Salami also said the commission enjoined operators to place the interests of customers at the centre of their business plans and strategies.

 


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Haruna Magaji: Haruna Magaji is a journalist, foreign policy expert and closet musician. He is a graduate of ABU Zaria and a member of the Nigerian union of journalists. JSA, as he is fondly called, resides in Suleja, Abuja. email him at - harunamagaji@financialwatchngr.com
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