The President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Ayodapo Shoderu, has confirmed that there are still some brokers who indulge in the unethical practices of collecting overriding commission and rate cutting in spite of the warnings by the National Insurance Commission (NAICOM) to sanction such defaulting operators.
Shoderu, who spoke at the Members’ Evening of the council in Lagos recently, vowed that Governing Board of NCRIB would henceforth sanction any broker who violates the law or directive on insurance broking operation.
He stated that “I am distressed to again address one of the unpleasant trends that have continually affected our operations as insurance brokers, and this is the pervasive incidence of rate cutting.
“You will recall that at the inception of my tenure, my team visited the Commissnoner for Insurance who warned brokers that indulged in collecting overriding commission from insurance companies to desist from the act, warning that the commission will not hesitate to sanction such unethical players.
“This and sundry issues we were to discuss more intensively with the Nigerian Insurers Association. It was our belief that the forum should be a good platform to initiate steps towards upward review of the existing brokerage commission. Unfortunately, the meeting is yet to hold from the NIA end.
“It is more regrettable that the Council has continued to receive an avalanche of complaints about some ethical brokers losing businesses to those who continually cut rates or quote uneconomic rates. This trend is “killing” to the brokerage profession and must be condemned in its entirety.”
He added that “It is the intention of the Council to continually promote high ethical standards, seeing it as the only way the present generation of professionals could bequeath a sound and solid profession to the coming generation. Anything short of this is unacceptable.
“Also, I must stress that it will be most difficult for me or the Governing Board henceforth defend any member that violates the law or directive on insurance broking operation. To be fore warned is to be fore armed!”