The National Insurance Commission (NAICOM) says it has developed new alternative channel for insurance distribution, code named “State Insurance Producer” (SIP), and will become effective in January.
The Commissioner for Insurance (CFI), Alhaji Mohammed Kari, told the News Agency of Nigeria (NAN) on Sunday that the SIP was evolved to ensure insurance spread in the country.
Kari said that SIP would bridge the wide gap and link Nigerians with access to insurance in relation to the population size of Nigeria.
He said that the SIP would offer intermediary services, as defined in the operational guidelines which would become effective on Jan.1, 2019.
“Once licensed by the commission, the SIP will enter into a Memorandum of Understanding (MOU) with the commission and the approved insurance companies.
“The insurance companies must operate within the SIP’s jurisdiction for the purposes of placement and management of insurance business.
“The SIP shall only transact insurance business with the approved insurers.
“It is good to note that only insurance companies with branch offices in the respective states will be eligible to transact business with the SIPs,” the commissioner said.
He said that to complement the SIP policy, NAICOM would open 20 new branches across the states of the federation for strict management of the policy and deepening of insurance penetration.
Speaking on its advantage, Kari said that the new project would accelerate the government delivery on Economic Recovery and Growth Plan (ERGP) in the areas of jobs creation and poverty prevention.