NAICOM Introduces New Insurance Distribution Channels
In continuous effort to deepened insurance penetration in Nigeria, the National Insurance Commission (NAICOM) is introducing new channels of insurance distribution in the country.
To this end, the Commission has created new distribution agencies to be known as “Referral Partners/Agents”. This channel will entails integrating and involving many organizations to be Partners/Agents of insurance companies in the distribution of insurance products across the country.
The initiative is expected to create opportunities for individuals and regulated corporate entities to play a vital role in the insurance distribution chain to accessand reach the largely underserved majority of the Nigerian population without being exposed to any liability.
The draft guidelines to ensure seamless operation of this initiative is ready for exposure after which it shall be issued as an operational guideline.
Meanwhile, the Commission will be meeting with relevant Regulatory Agencies and professional bodies to discuss the modus operandi and benefits inherent in this new initiative.
Inadequate Insurance distribution channels has been roundly identified as one of the major challenges of deepening insurance penetration in the country and the Commission believes that expanding the channels of distribution will go a long way in bridging the gap of insurance awareness and penetration in Nigeria.
Also, when implemented, the new initiative will not only achieve the desired increase in insurance penetration, but would contribute to the Federal Government’s drive to create employment and wealth in the economy.
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