The high cost of incorporating a broking firm is a significant obstacle to deepening insurance penetration in Nigeria, according to Agboola Pius, Managing Director of Peerless Management & Solutions Limited and former Director of National Insurance Commission (NAICOM).
Speaking at the Nigerian Council of Registered Insurance Brokers Lagos Area Committee (NCRIB-LAC) 2024 midyear workshop in Lagos, Agboola noted that the cost of incorporation forces operators to establish businesses only in profitable locations, leaving rural areas underserved. He advocated for incentives to encourage brokers to operate in rural locations, as seen in developed countries.
Agboola emphasized the crucial role of insurance brokers in insurance distribution, generating 68.32% of the industry’s income. However, he lamented the absence of brokers in 16 states, including Nasarawa, Niger, Adamawa, and others.
To enhance insurance penetration, Agboola called for collaborations, partnerships, reduced operational costs, harmonized experiences, and leveraging artificial intelligence. He stressed the need for a collective effort to deepen insurance penetration and increase awareness among Nigerians.
