Cross-section of shareholders in insurance companies have commended the National Insurance Commission (NAICOM) for ending annual payment of insurance fees by insurers.
The commendation was reached at the Niger Insurance Plc’s Annual General Meeting (AGM), which held in Lagos recently. The firm’s shareholders said that stoppage of the yearly due, would not only give room for longer term planning, but helps to consolidate earnings.
Mr. Patrick Ajudua, a retail shareholders in the company and shareholders’ activist, while lauding NAICOM at the AGM, said that the stoppage of yearly licensing would enable insurance firms to enhance performance and post higher earnings.
“I commend NAICOM for stopping annual license fees to a more longer years of license fees, which is good for the industry and the economy.”
Corroborating this to Daily Times Nigeria, Mallam Mikail of Constance Shareholders Associations of Nigeria said that the stoppage of the yearly license fee, would give the companies breathing space to plan better and more grow earnings for the benefit of all stakeholders.
Daily Times recalls that recently, Mr. Kayode Okunoren, President, Nigeria Council of Registered Insurance Brokers (NCRIB), recently commended NAICOM for considering abolishing annual renewal of broker’s’ licence.
The NCRIB boss, while advancing for a longer period of five years or more, said that the council had been calling for the abolition, and expressed the hope that it would give insurance business a boost. “We praise NAICOM for abolishing the annual renewal, Let NAICOM consider five-year or life licensing regime”
NAICOM had, at the 2017 National Insurance Conference in Abuja recently, said that it resolved to extend the brokers’ license renewal period.
Mr. Sunday Thomas, the NAICOM Deputy Commissioner for Insurance (Technical), said that the process of annual renewal of the license had become cumbersome.
He said, “We can consider a licensing system that has a longer life span”
Thomas had said: “NAICOM is ready to make changes where necessary. Life licensing for brokers may not be possible for now, but there are challenges in the annual license renewal.