By LOVETH-AZODO CHIJIOKE, Lagos
As activities marking the 2024 Customer Service Week rounded off across key sectors of the Nigerian economy, the Nigerian Council of Registered Insurance Brokers (NCRIB) has reaffirmed its commitment to bridging the persistent trust deficit between underwriting firms and policyholders.
Speaking with the Lagos Traffic Radio 96.1 FM, the Executive Secretary and Chief Executive Officer of the NCRIB, Mr. Tope Adaramola, disclosed that the era of deliberate claims repudiation and oppressive fine-print clauses in policy contracts is effectively over in the Nigerian insurance market.
Addressing the theme “Beyond Premiums: How Registered Insurance Brokers Are Redefining Customer Service in a Low-Trust Economy,” Adaramola explained that insurance is essentially an intangible product centered on a pledge of financial restoration. He maintained that the primary statutory mandate of registered brokers is to stand between underwriting companies and the insuring public as technical intermediaries, ensuring that valid claims are settled without unnecessary disputes.
Adaramola dismissed the widespread misconception that engaging an insurance broker inflates the cost of acquiring policy cover.
Drawing an analogy with the media industry, he stated:
“It is akin to an advertising agency dealing with a broadcast station’s rate card. You don’t pay the insurance broker directly; the broker is remunerated through commission by the underwriting company. By engaging a registered broker, the client actually pays less while securing technical negotiation power for competitive rates.”
He cautioned that nearly 90 percent of policyholders who encounter frustrating repudiation and “stories that touch” either engaged quacks or bypassed brokers altogether out of naivety, leaving them vulnerable to technical policy exclusions they failed to comprehend at inception.
On claims turnaround time, the he pointed out that modern digital claims handling has significantly shortened resolution windows. Genuine motor and property claims with complete documentation are now routinely settled within a week, with several leading underwriters pushing toward a 24-hour turnaround benchmark.
A listener identified as Johnson messaged from Lagos, decrying the industry’s perceived reluctance at the point of indemnification: “I must confess I am one of the many Nigerians who believe that insurance companies collect premiums readily, but make things difficult when it is time to pay.”
Responding, Adaramola assured that market reforms driven by the National Insurance Commission (NAICOM) and NCRIB’s internal arbitration mechanisms have brought unprecedented ethical accountability to the underwriting ecosystem, urging aggrieved claimants with valid documentation to report unresolved matters to the council.
Joshua, calling in from Ikotun, shared a personal account of a friend who fell victim to an unregistered broker who absconded after a claim materialized.
Adaramola clarified that licensed brokers are corporate entities duly registered with the Corporate Affairs Commission (CAC), licensed by NAICOM, and bonded by NCRIB’s professional code. “Before committing your hard-earned naira, conduct basic due diligence. Verify membership on our official portal at ncrib.net. A genuine broker who faces loss of license and business reputation will never flee over a legitimate claim,” he emphasized.
In response to queries from Shuaibu Ibrahim and Taiwo from Ikorodu questioning why an ordinary car or home owner should not deal directly with an insurance company, Adaramola stressed that the complex technicalities of insurance contracts require expert review. He noted that brokers act as a critical shield, identifying restrictive clauses and fine-print caveats before a contract is signed.
While acknowledging that the roughly 600 registered brokerage firms spread across NCRIB’s six geopolitical area committees remain modest relative to Nigeria’s over 200 million population, Adaramola insisted that the industry is aggressively expanding consumer education and access.
He concluded with an advisory to motorists and property owners against fatalistic complacency:
“The world is fraught with unforeseen risks. Leaving your assets unprotected under the guise of ‘God forbid’ contradicts basic prudence. Whatever asset you own that would cost you sleep if lost is worth insuring and it must be done through a registered broker to guarantee peace of mind.”
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