Limited distribution channels, bane of insurance
The Commissioner for Insurance, Alhaji Mohammed Kari has identified limited channel of distribution as a setback to insurance penetration and growth.
According Kari, NAICOM decided to introduce some draft guidelines to address the issue of low insurance penetration in the market.
He also observed that the industry had concentrated on servicing only government and corporate clients, paying less attention to the retail and micro consumers.
“In this regard, we have considered and agreed to create additional distribution channels in the market to include using the services of state governments to enforce compulsory insurance at the state level.
“We have further decided to explore and demystify the partnership type of operation for brokers and I can assure you it will open a new vista in insurance mediation in Nigeria and most importantly, it will clearly separate the professionals from the businessmen”, Kari said.