Currently, we have about 500 registered insurance brokers in Nigeria, whose job is to use their expertise and knowledge to assist the client in selecting the best policy.
To assist the client in making the best decision, a broker will compare and contrast insurance policies from various companies.
Though, insurance brokers must be well versed in their expertise in order to breakdown the complex insurance terms that exist for their customers, they also need to familiarise themselves with the insurance industry and learn as much as they can about it.
According to the executive secretary/CEO, Nigerian Council of Registered Insurance Brokers(NCRIB) Mr Tope Adaramola, an Insurance broker is an intermediary in insurance, who sells, solicit and negotiate insurance policies for compensation.
On third party motor insurance, he charged the motoring public to insure their vehicles through insurance brokers, who, apart from enlightening them at the point of signing insurance contract, will also assist them to retrieve their claims in the insuring firms with ease.
He said, the ultimate of insurance is peace of mind, adding that, ”it often baffles me when I see two enlightened persons fighting themselves on the roads during a crash, when what they could have done is to exchange their respective third party motor insurance to get their cars fixed. Third party covers repair is to the tune of N3million in the new rates when in actual sense, you paid N15,000 new premium which used to be N5,000 before now.”
Insurance companies as risk buyer, he said, will always return back the insured to the financial position he was, prior to the occurrence of the insurable risks, urging people to utilise the tool of insurance to replace their assets.
Becoming a Licensed Insurance Broker
There is a governing body for Insurance brokers in Nigeria called NCRIB. They proffer licenses for insurance brokers and insurance broker agencies. You will need to be certified by the NCRIB as well as an operating license from the National Insurance Commission(NAICOM) before you can legally operate as a licensed insurance broker.
While an insurance broker develops a solid risk profile and specific features for businesses and individuals, he or she also gives expertise advice on insurance programmes protecting clients, negotiate sand facilitates claims procedures on behalf of clients, study the portfolio of insurance companies to secure the best possible insurance pricing, periodic presentation of details of insurance policy to clients and also utilises the vast knowledge of the insurance industry to select and meet the tailored needs of clients at competitive rates, even as he or she provides technical expertise and insights on developments and creative ideas within the insurance industry.
Preferably, a BSc degree in actuarial sciences, Economics, Insurance and other finance-related courses is afoot in the right direction if you want to become an Insurance broker.
Ensure you find ways to intern with financing institution, preferably in risk management companies or a brokerage firm while during your internship, you will acquire and participate in critical roles that open you to more experience.
Initial Capital
An investor in insurance broking needs about N5 million for application and licensing fees. This is exclusive of the office building, operating expenses, among others, which could run into an additional N10 million.
Hence, to start the business, you need a minimum of N10 million to N15million.
Profitability
It’s an highly profitable business because we have instances of some broking firms doing a annual turnover of N20 billion or more businesses and are recording about N3billion profit.
What is highly essential to succeed is being highly skilled and have the necessary connections within governments and individual policyholders. Moreover, the credibility of your brand is equally critical to making it big in this business.
