At the onset of December 2021 renewal season the Professional Reinsurers Association of Nigeria put their feet down and also drew a red line that the current fire rates must not cross, it was not a surprise but unsettling for brokers because its too short a time to report back to their clients. On account of this a six months push back was secured, terminating June 30, 2022.
With the long history of heavy losses sustained, reinsurers retreated from the tripartite discussion with brokers and insurers content the deal was secured howbeit six months in coming.
As they wait for the new fire rates to commence, the fire offices committee of the Nigerian Insurers Association and same arm of the Nigerian Council of Registered Insurance Brokers along with the Professional Reinsurers have stepped up technical meetings as the D-Day draws near.
Acquiescing with reinsurers, the President Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Rotimi Edu, said the certain moribund rate had become embarrassing, however, he said rate increase needed combined work from PRAN, NIA and NCRIB. He explained this at the media briefing to kick-off the 60th anniversary and new logo unveiling of the council today at the Brokers House in Yaba, Lagos.
Edu said brokers body was able to secure stay of action because insurance buyers were not informed and therefore, had not factored the increase into their insurance budget for the new year which commenced January 1 2022. He said acting contrary could force most of them with parent companies abroad to transfer their risks to global insurance cover or to captive insurance cover of foreign holding companies. In that wise, he said Nigeria will loss premium income.