The National Insurance Commission has cancelled 32 licences of insurance brokers and suspended two others for various infractions.

The Commissioner for Insurance, Mr. Fola Daniel, stated this, in a presentation to the House of Representatives in Abuja.

He said, “32 licences of insurance brokers have been cancelled, while two licences of insurance brokers were suspended for various infractions.”

Although, the names of the 32 affected brokers were not disclosed, our correspondent gathered that some of them had not been able to renew their licences.

The President, Nigerian Council of Registered Insurance Brokers, Mrs. Laide Osijo, said that any broker who did not renew his licence after three months would be presumed to be out of business.

According to her, most of those affected had failed to meet the necessary renewal process.

There are currently 60 life and non-life insurance companies with two reinsurance companies operating in the country.

The commission also listed 600 insurance brokers, 54 loss adjusters and over 6,000 insurance agents.

NAICOM, in a statement, had earlier suspended the licence of an Akure-based insurance broker from doing business until further notice.

It said that the suspension became necessary following the manner in which the firm handled the Ondo State Government’s property insurance account.

The affected brokers were accused of receiving commission in excess of the maximum amount prescribed by law; leading a consortium of brokers, consisting of unregistered brokers; and facilitating the deduction of some amount of money categorised as Christmas gift from the premium due to the underwriters.

The commission had earlier fined a Lagos-based insurance broker N2m, for breaching guidelines for oil and gas insurance, while placing such risk.

Osijo stressed the relevance of the insurance brokers as professional intermediaries operating between the insured and the insurer.

According to her, their duties include rendering insurance advisory services to clients on the type of insurance to undertake, with whom, and at the best rates.

She said, “The broker plays a crucial role in the risk management chain because he represents his clients with the underwriters or the insured not only in the placement of risks but also in the pursuit of claims when a loss arises.”

Source: Punch/Nike Popoola