NAICOM to release states’ policy guideline next week

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

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

Kari noted that SIP will be an agency of state government licencsed by NAICOM to provide intermediary services and 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.

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 insurer which have branches offices in the state.

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.   

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