Insurance Brokers Retool To Boost Customer Service In New Motor Premium Rate
L-R: Ademola Olutisin, Chairman, Nigerian Council of Registered Insurance Brokers (NCRIB) Lagos Area Committee(LAC); Lanre Ojuola, Deputy Director, Operations at Nigerian Insurers Association (NIA); Ekeoma Ezeibe, Vice President, NCRIB; Ayodele Akande, Past Chairman, LAC and Rotimi Olukorede, Immediate Past Chairman LAC during the March Annual General Meeting of NCRIB LAC held in Lagos.
Insurance Brokers have equipped themselves with knowledge and technical capacities to enable them deliver value to customers in the new motor premium rate.
The Nigerian Council of Registered Insurance Brokers Lagos Area Committee (NCRIB LAC) said this is part of its on-going efforts to ensure that members are up-to-date with requisite knowledge to deliver efficient service to clients.
Mr Ademola Olutisin, chairman, NCRIB Lagos Area Committee made the remarks at its March Annual General Meeting held in Lagos with the theme ‘The New Motor Insurance Rates: Brokers and Underwriters Perspective’.
Olutisin said the event was to provide opportunity for her members to understand the new policy and share their experiences with clients after two months of implementation.
Mr. Rotimi Edu, president, NCRIB speaking at the event said it is heart-warming that the LAC has thought it wise to use this opportunity to retool its members on the new market policy and how it can be maximized to serve customers better.
Edu who was represented by Mrs. Ekeoma Ezeibe, vice president of NCRIB said, the Council will continue to encourage platforms and opportunities that will enhance member’s knowledge to deliver value to clients.
Mrs Olufunke Adenusi, managing director/CEO, Colximate Insurance Brokers who spoke on them from ‘Brokers Perspective’ said “No body has opted not to insure”.
According to her, a lot of clients have accepted the new premium rate, having understood it was in line with economic realities.
Adenusi said “when you consider the cost of spare parts in terms of replacement cost in event of accident in motor third party insurance, you will appreciate the need for this increase, she said.
She said the new rate will increase the premium income of underwriters and enable them meet claims more promptly.
Mr Yetunde Ilori, director general, Nigerian Insurers Association (NIA) speaking on ‘Underwriters Perspective’ said the increase in premium rate for motor business was long overdue.
According to her, motor third party business in the insurance industry was not profitable, and so running at a loss.
Ilori who was represented by Mr Lanre Ojuola, deputy director, Operations at NIA said “we were not running our motor portfolio at profit, and third party was at a loss.
Ilori therefore urged the brokers not to accept the new rate because it was made by the National Insurance Commission (NAICOM), but because it was justifiable given the economic realities.
Ilori said the target is to have a sound insurance industry that is able to meet its expectation at all times, provide employment for teaming youths and contribute reasonably to the country’s GDP.
Under the new tariff released 22nd December 2022, private vehicles that were paying N5,000 premium for N1 million Third Party Property Damage (TPPD) limit, are now to pay N15,000 premium for N3 million, while owner goods vehicles are to pay N20,000 premium for N5 million compensation limit, and staff buses are to pay N20,000 premium for N3 million.
For commercial trucks and general cartage, they are to pay N100, 000 premium for N5 million TPPD limit; tricycles N5, 000 for N2 million TPPD limit, and motor cycles N3, 000 for N1 million TPPD limit.
While for comprehensive motor insurance policy, premium rate shall not been less than five percent of the sum insured after all rebates and discount.
