By Ngozi Onyeakusi — In as effort geared towards promoting insurance penetration in the 36 states of the federation and the FCT, the National Insurance Commission (NAICOM) is set to release a new insurance distribution channel guidelines known as the State Insurance Producers(SIP) come January 2019
According to the commission, the move was in furtherance of its policy to diversify insurance distribution especially compulsory insurances across the country.

The Commissioner for Insurance, Mohammed Kari, while speaking at the 2018 education seminar organised by the Chartered Insurance Institute of Nigeria(CIIN) in Ibadan, Oyo State, said the SIP, would serve as an alternative channel for insurance distribution.
“The SIP will be an agency of a state government licenced by NAICOM to provide intermediary services as defined by the guideline issued by the commission and also remunerated as by the provisions of the operational guideline.
“The operational guideline has already been concluded and shall come into effect on January 01, 2019,” he stated.
Kari, listed the key responsibilities of the SIP as facilitating the sale of the compulsory classes of insurance within the state jurisdiction and all classes for its principal’s insurances (state government);
According to him, additional insurance services and product would be considered in the future, depending on the success of the initial approach.
He also said it will help in exercising on defaulters, the powers to penalise them according to the laws of the states, maintaining proper records of individuals and organisations bound by the requirements of the compulsory classes of insurance and monitoring the compliance.
“Once licenced to operate by the commission, the SIP shall enter into a memorandum of understanding as may be sanctioned by NAICOM, with approved insurance companies in its jurisdiction for purposes of placement and management of insurance business within the state.”
He said the SIP shall only transact insurance business with approved Insurers, noting that only insurance companies with branch offices in the respective states would be eligible to transact business with the SIPs.
Kari, said to complement the SIP policy, the commission would open 20 new branch offices in states across the country, for strict management of the policy and the enhancement of insurance penetration.
He said the commission, believes this would also go a long way in meeting government expectations with regards the economic recovery and growth Plan (ERGP) in the areas of job creation, poverty prevention and confidence in the face of risk.