The Nigerian Council of Registered Insurance Brokers, NCRIB, has warned its members to carry out due diligence of insurance firms before placing business with them.
President of the Council Bola Onigbogi while addressing a forum of its Members Evening, disclosed that its Investigation Committee is inundated with complains of nonpayment of claims and the only way to avoid such problems is for Brokers do their proper investigations.
“It was quite unfortunate that recently, the Nigerian Insurers Association (NIA) published in a half page advert the expulsion of three insurance Companies, namely, Industrial and General Insurance Co. Limited; Niger Insurance Plc and Standard Alliance Insurance Plc.
“According to NIA, the affected companies failed to meet their obligations to policy holders. It was so disheartening that the affected companies were once giants of the industry, contributing immensely to the growth of Nigeria insurance industry.” she said.
The issue became subject of discussion on the Councils platforms, not only to x-ray the implication of such advert on the image of the industry but to as well consider the implication on members who have one business or the other with the companies, she stated.
Continuing Onigbogi said, “As a proactive Council, we like to urge members to always critically examine the viability of any underwriting firm before placing business with them. This is because, in recent time, there are allegations involving nonpayment of claims as low as one thousand USD since 2019. It distressing that in order to save the face of the industry, some Brokers have had to pay their clients.”
The president also reported the outcome of their visit to Vice President, Professor Yemi Osinbajo, in Abuja, where key issues affecting the industry were discussed.
She said the meeting was a successful as Osinbajo pledged to sustain engagement between government and players in the industry with the view to help grow the sector.
Onigbogi, said the Council used the opportunity to solicit for his support to advance the industry’s course of making Insurance part of government priorities, especially, in urging Ministries, Departments and Agencies to make adequate provision for insurance in their yearly budgets.
“We also used the opportunity to hint him on the progress so far on the ongoing Insurance Consolidated Bill at the National Assembly.” she said.
On his part, Osinbajo, highlighted the crucial roles of insurance Brokers in the on-going revitalization of the nation’s economy.
She appreciated the Management of Heirs Insurance Plc and Heirs Life for sponsoring the event.
“The two companies had again etched their names indelibly on the mind of Insurance Brokers who incidentally control the largest chunk of business in the industry. I can only assure you that going forward; your business would never remain the same. Shortly, you would be called upon to address this auspicious gathering, while I guarantee you for your endorsement by my professional colleagues.” Onigbogi said.