The National Insurance Commission, NAICOM, has unveiled plans to issue new guidelines to improve the operational standards in the nation’s insurance industry and by implication, properly reposition it for improved contributions to the Gross Domestic Product (GDP).

The Commissioner for insurance, Mohammed Kari, made this disclosure while addressing insurance brokers executive officers, during their retreat hosted by the Nigerian Council of Registered Insurance Brokers (NCRIB) held in Uyo, Akwa Ibom State

The industry regulator, who described the theme of the forum – ‘The Future Broker’ – as very apt given its relevance to the increasing need to re-define the future of the subsector, hinted that the draft guidelines would soon be ready for public inputs before it will be finally adopted..

He said: “It is pertinent for me to advice at this point that in discussing “The Future Broker”, it is imperative for you to first and foremost, x-ray the past and present broker to ascertain its sound state of health. I say this because it is until you are able to diagnose the specific ailment inhibiting the good health of the present broker, it might be difficult to give the accurate prescription and dosage for the future broker of your dream.

 “Suffice it to say then that the place of “The Future Broker” in the Nigerian insurance sector is without doubt hinged on the successful and accurate diagnosis of the ailment of the present broker and the administration of the right prescription/dosage else, your exercise here today would be in futility. You should be able to honestly identify what must change in the prevailing structure and resolve to collectively walk the talk”, Kari added.

The NAICOM’s boss pointed out that from a regulatory perspective he identified major challenges confronting the sub-segment, including the fact that the typical Nigerian insurance broker is unprofessional and does not care about the “big picture and his lack of confidence possibly because he does not trust his ability, amongst others, which the retreat could address.

While noting that NAICOM’s  approach to regulation has been an interactive one and has encouraged self regulation where feasible, Kari lamented however that this approach had sometimes ago been misconstrued as a license for statutory independence.

He said: “This is a misnomer in any clime.  We urge the working together of all arms of our sector to ensure synergy, that too is ignored by the “we’ll do it alone” tendencies we observe in most market initiatives, especially from your council members. This is not healthy, “the Future Broker” must address it and find a way to be part of the future market.”

Kari hinted that to address identified gaps existing in the regulation and supervision of the industry, the Commission would continually issue new and supplementary guidelines to close such operational and regulatory gaps.

To achieve this and to supplement the tweakings in the distribution channels, he disclosed that the Commission would soon expose specific drafts of guidelines directed to each sector of the industry.

He clarified: “When the Brokers’ is released, you would see our idea for “the Future Broker”. This, we believe, would complement the excellent effort of this retreat. We are sure there would be in it, prescriptions of the appropriate medication needed to cure some of the illnesses inhibiting today’s broker.  This would speed up the realisation of “the Future Broker”

“It is crucial for all stakeholders in the industry to begin to evolve strategies for exploiting the retail end of the market. It is no gainsaying the future of the industry will depend more on retail rather than corporate businesses”, the industry regulator added.