NCRIB To Brokers: Be Wary Of Weak Insurance Firms
The Nigerian Council of Registered Insurance Brokers (NCRIB) has cautioned its members to be wary of financial health of insurance underwriting firms where they place their clients’ businesses to ensure the protection of the image of brokers and that of insurance industry in general.
NCRIB, is the umbrella body of insurance brokers in Nigeria.
NCRIB President, Shola Tinubu, said this while addressing brokers at the June edition of the bi-monthly ‘member’ evening’ of the council held in Lagos recently. He said some insurance firms are currently facing financial challenges
Noting that this informed the decision by the industry regulator ,National Insurance Commission (NAICOM) to institute the ongoing recapitalisation exercise in the industry, Tinubu, stressed that there are feelers about some brokers still placing businesses with companies that are financially challenged .
Warning that such underwriting firms may have difficulty in paying claims when losses occur, Tinubu cautioned brokers to be watchful, adding that as critical stakeholders, brokers should be watchful as the implementation of the directives on recapitalisation unfolds.
He noted that insurance brokers cannot shy away from the fact that the directive on recapitalisation will adversely affect the entire industry, stressing that as a proactive council, the body is critically examining the implications and possible solution to the effect the implementation would have on members.
“It is no more news that the National Insurance Commission (NAICOM) has jerked up the minimum paid-up capital of Insurance Companies in Nigeria. The new capital base required that Companies that want to remain in Life Business should raise their minimum paid up share capital from N2 billion to N8 billion; General Insurance Companies from N3 billion
to N10 billion, Composite Insurance Companies from N5 billion to N18 billion, while Re-Insurance Companies will require a Paid Up share capital base of N20 billion from N10 billion.
“However, on a personal note, I would like to enjoin my professional colleagues to be wary of where they place their business for the protection of image of brokers and that of the Council. News have been going rounds that some brokers still indulge in placing businesses with companies that are challenged and that may have difficulty in paying claims when losses occur. This should be watched! as critical stakeholders we would be watching as the implementation of the directives unfold before us,” he said.
