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NAICOM to release state insurance policy guideline next week

NAICOM to release state insurance policy guideline next week

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The National Insurance Commission (NAICOM) is partnering state governments to deepen insurance penetration,as the Commission will next week release the new distribution channel guidelines called the State Insurance Producer (SIP).

Commissioner for Insurance, Mohammed Kari, who made this known at the Chartered Insurance Institute of Nigeria (CIIN) 2018 Education Seminar in Ibadan, Oyo State capital, said the operational guideline shall come into effect on January 1, 2019. To complement the SIP policy, the commission will be opening 20 new branch offices in the states across the nation with each Geo-political zone getting four branches.

Kari noted that the SIP will be an agency of state government licensed by NAICOM to provide intermediary services as defined by the guideline issued by the commission and remunerated according to the provisions of the operational guideline.

He said the key responsibilities of SIP include, facilitating the sale of the compulsory classes of insurance within the state jurisdiction and all classes for its principal’s insurance and that additional services and products will be considered in the future, depending on the success of the initial.

Other duties, according to him, are exercise on defaulters the power to penalise them according to the laws of the states and maintain proper records of individuals and organisations bound by the requirements of the compulsory classes of insurance and monitoring the compliance.

The Commissioner said once licensed, the SIP shall enter into Memorandum of Understanding (MoU) as may be sanctioned by NAICOM with approved insurance companies in its jurisdiction for the purpose of placement and management of insurance business with approved insurers, which have branch offices in the state.

Highlighting the benefits accruable from the SIP initiative, he maintained that it will help to meet the government’s expectations with regards to Economic Recovery and Growth Plan (ERGP) in  job creation, poverty prevention and confidence in the face of risks.

Other benefits are: answer to the saturation in the corporate segment, improve the image of the insurance industry and brand building for individual insurance institutions.

The NAICOM boss said insurance plays a pivotal role in financial inclusion as it reduces poverty line, helps people to manage their risk and protects them from negative adverse effect of any unforeseeable circumstances and increases access to other financial services.

Oyo State Governor Senator Abiola Ajimobi has offered NAICOM free land to build its office in the state.

He commended the CIIN for educating insurance practitioners and urged insurance operators to deal with negative perception people have about insurance; develop quality services and superior value to customers; introduce minimal premium and tackle the menace of quacks and fraudulent practitioners.

He said the state has resolved to set up a Global Micro Insurance agency that will be private sector-driven.

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