An insurance agent is a person who sells insurance products and services to clients on behalf of an insurance company or an insurance broker. An insurance agent in Nigeria has to comply with the following requirements:
– The agent must be registered and licensed by the National Insurance Commission (NAICOM) as an insurance agent under the Guidelines for the Regulation of Insurance Agents in Nigeria.
– The agent must act in the best interest of the client and the insurer, and avoid any conflict of interest or misrepresentation.
– The agent must comply with the provisions of the National Insurance Commission Act 1997, the Insurance Act 2003, the Nigerian Code of Corporate Governance 2018, and the Guidelines for the Regulation of Insurance Brokers in Nigeria 2021.
– The agent must disclose to the client all material facts and information about the insurance products and services offered, including the terms, conditions, benefits, exclusions, limitations, and premiums¹.
– The agent must obtain the client’s consent and authorization before collecting any premium or issuing any policy on behalf of the insurer.
– The agent must remit all premiums collected to the insurer within the stipulated time frame and maintain a separate account for clients’ funds.
– The agent must keep proper records and accounts of all transactions and dealings with clients and insurers, and submit periodic returns and reports to NAICOM as required.
– The agent must adhere to the ethical standards and professional conduct prescribed by NAICOM and the relevant professional bodies.
The professional role of an insurance agent in Nigeria includes:
– Assessing and evaluating the risks and needs of clients, and advising them on the suitable insurance products and services available.
– Marketing and selling insurance products and services to clients, and negotiating the best terms and rates with insurers.
– Providing after-sales service and support to clients, such as renewing policies, processing claims, updating records, and resolving complaints.
– Building and maintaining good relationships with clients and insurers, and expanding the client base through referrals and networking.
– Updating and enhancing one’s knowledge and skills on insurance products, services, regulations, trends, and best practices