108 delisted insurance brokers yet to meet conditions for re-absorption

The 108 insurance brokers delisted by National Insurance Commission (NAICOM) in December last year for failing to comply with requirements for their licence renewal are yet to meet conditions for re-absorption into the industry.

The regulator, according to those, due to high renewal fees and huge volumes of documentation requires this familiar with the issue.

Some of the requirements as listed on the website of the commission include for the first phase, a letter of appeal with reasons why the last licence lapsed and payment of non-refundable fee of N250,000 for processing of the appeal.

Phase two of the conditions includes writing of an application letter for re-registration, provided that the appeal is sustained by the commission; payment of application fee of N250,000, certified true copy of CAC’s Forms C02 and C07, evidence of payments of the fee in phase one.

Payment of all ISS Levies due before the licence lapsed, nomination of qualified CEO and executive management for NAICOM’s approval, and submission of a management account/statement of accounts as at the last day of last month of the period since the last approved account.

The concerned brokers are also expected to apply for NAICOM’s approvals of the member of the Board of Directors at the same time go for re-registration of broker to determine non-violation of the Insurance Act and payment of penalties for identified violations/non compliance.

Interviews will also be conducted with submission of additional documents like professional indemnity, sworn declarations, tax clearance for the expired period of license, certificate of Oath from the External Auditors and payment of licence fee of N2,250, 000.00.

Insurance operators, who spoke with BusinessDay on the conditions of anonymity, decried the huge fund and processes attached to the license renewal requirements by NAICOM.

“The volume of documentation is lamentable, the renewal fees to the Nigerian Council of Insurance Brokers (NCRIB) and to National Insurance Commission (NAICOM) are as well difficult for us to meet. What they don’t realise is that outside this huge fund being demanded, we still have to pay taxes to tax authorities, so there is need to prune down the fees,” he said.

Following the delisting of 108 insurance and reinsurance brokers by the NAICOM on December 8 over compliance issues and subsequent pleas by the NCRIB on behalf of some of its members affected, the Insurance regulatory body in the country, gave seven requirements for the re-registration for insurance brokers with lapsed licences.

In a chat with BusinessDay, Razak Salami, senior manager, corporate affairs of NAICOM, informed that the process for the registration of lapsed insurance brokers had begun since January, stressing that once the conditions were met and satisfied with by the commission, the concerned operators would be allowed to go into full operation.

“It is a process that they have to follow, the process started in January and once all these are done and finalised, they’ll be allowed to resume operation. Ordinarily, we could have said they should go through the re-registration from corporate affairs commission but the move is aimed at giving them a soft landing,” Salami said.