Insurance brokers to publish annual gross premium generated

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The President, Nigerian Council of Registered Insurance Brokers, Mr Shola Tinubu, says the council will take appropriate steps to ensure that the gross premium generated by brokers is published annually.

Tinubu, who made this known on Wednesday at a media parley in Lagos, said that the publication would start in 2019.

He said that the council have rough data for commission, but lacked data for gross premium generated by the brokers annually.

The  brokers’ gross premium is the total income on businesses attracted by brokers to insurance industry annually.

The NCRIB president said it was a challenge that the council would rise up to, adding that it should be able to submit what the brokers’ generated annually to the table.

“I think it is a challenge we can overcome, starting from next year,” he said.

Tinubu, however, said that the volume of business written by insurance companies grew to N363 billion in 2017 from N315.96 billion in 2016.

According to him, but the amount generated by brokers cannot be ascertained due to paucity of data.

Investigations revealed that underwriters paid over N33.6 billion to brokers and agents as commission for premium generated in 2016.

“Leadway Assurance Ltd. paid about N4 billion commission; FBN Insurance Ltd. paid N1.93 billion; AIICO Insurance paid N1.80 billion; NEM Insurance paid N1.80 billion and Axa Mansard Insurance paid N1.49 billion.

“Others are: Custodian & Allied Insurance, N1.37 billion; WAPIC Insurance paid N1.30 billion and Zenith Insurance Company Ltd. paid N1.09 billion, among others.

“As we see in 2016, the commission were paid to brokers and agents, not brokers alone; so, we cannot deduced the annual broker’s gross premium from the commissions,” he said.

Tinubu said that the council would henceforth keep track on necessary data in order to know the exact brokers’gross premium annually to enable the council to deliver on its promise.

Ime N