December 22, 2018 08.35AM / By NAICOM / NAN
The National Insurance Commission (NAICOM) on Thursday withdrew State Insurance Producer (SIP), a new insurance distribution channel it newly evolved.
The commission announced the withdrawal in a circular signed for the commissioner for insurance (CFI), Mohammed Kari, by the director, policy and regulation, Agboola Pius.
The circular entitled, “Withdrawal Circular” on SIP operational guidelines, with reference number, NAICOM/DPR/CIR/20/2018 December 20, was sent to all insurance institutions.
The circular reads: “Pursuant to the powers conferred by the enabling laws, the Commission hereby withdraws and cancels the Circular dated November 19, with reference number NAICOM/DPR/CIR/17 /2018 and titled “Operational Guidelines on State Insurance Producer”.
NAICOM stated that the withdrawal and cancellation takes immediate effect.
The News Agency of Nigeria (NAN) reports that SIP is a fresh alternative channel for insurance distribution newly developed by the commission and was to become effective on January 1, 2019.
NAN earlier reported the commissioner for insurance, Mr Kari, as saying that the SIP business model would develop the insurance industry.
According to him, the model was to bring about 200 to 300 per cent insurance penetration in two years and increase the revenue base of state governments and insurance profits if implemented.
Highlighting more on the benefits accruable from the SIP initiative, Mr Kari maintained that it would help to meet the government’s expectations with regards to Economic Recovery and Growth Plan (ERGP).
“He said this was especially in the area of job creation, poverty prevention and confidence in the face of risks.
NAN further reports that, however, the Nigeria Council of Registered Insurance Brokers (NCRIB), on December 12, challenged NAICOM’s SIP.
According to the NCRIB, SIP is a threat to brokers’ business because brokers derive 70 per cent of their businesses from government, an aspect that SIP intended to serve.