NAICOM to use stockbrokers as referral agents
As part of its continuous effort at deepening insurance penetration in the country, the National Insurance Commission has urged the Director-General, Security and Exchange Commission, Mr. Munir Gwarzo, to engage stockbrokers as referral agents in the insurance distribution channel.
According to the Deputy Director, Authorisation and Policy, NAICOM, Mr. Leonard Akah, as saying this when he led a delegation of the commission on a visit to Gwarzo.
Akah stressed the role of stockbrokers in the sale of insurance products without being exposed to any risk.
In return, he said the stockbrokers would earn a percentage commission on any business they were able to generate to the insurance company, adding that this initiative was expected to create opportunities for the stockbrokers distracting them from carrying out their core functions.
He added that that draft guidelines to ensure seamless operation of this initiative would be sent to SEC for their input before the final exposure.
In his response, the director-general, who was represented by Head Monitoring Department, SEC, Mr. Isyaku Tilde, thanked NAICOM for the initiative and promised to collaborate with the commission to ensure its smooth execution.
The statement said, “NAICOM has identified various other professionals for consideration in the referral agency model. These are accountants, lawyers and a host of others.”