As Nigeria joins other 54 African countries to march on a single trade under the African Continental Free Trade Area (AfCFTA) to harness the $490 billion market, insurance brokers are positioning to maximise the benefits.
Many questions and concerns have, however, been raised by brokers who are interested in participating in the soon to be launched African single market during the Enlightenment Workshop for the Insurance Brokers, organised by the Nigerian Insurance Industry Committee on AfCFTA (NII-AfCFTA).
One of the concerns was what would be the insurance regulatory framework across Africa, bearing in mind that some African countries’ insurance regulators do not regulate their brokers as much as Nigerian brokers are.
Others concerns are whether or not the continental practitioners need a fresh licence from the regulator, National Insurance Commission (NAICOM) and trade association, Nigerian Council of Registered Insurance Brokers (NCRIB); the regulatory perspective to advertisement of insurance brokers across the continent; whether there would be joint regulation on insurance industry across the countries; whether the insurance industry is ready for AfCFTA and how prepared are other countries.
Director Trade in Service, Investment, IPR and Digital Trade AfCFTA Secretariat, Emily Mburu-Ndoria while responding to questions said each countries domestic regulations stand under AfCFTA.
Under the AfCFTA, every nation domestic regulations will prevail, but there would be mutual recognitions between countries.
According to her, the agreement would not stall members countries from having their regulations, but would help strengthen regulations to align with international best practices.
She urged insurance brokers to position themselves for the benefits to be provided by the agreement.
Chairperson, Nigerian Insurance Industry Committee on AfCFTA, Mrs. Ekeoma Ezeibe, submitted that the World Trade Organisation (WTO) Protocol signed in 1995 may have opened up some parts of the insurance sector in Nigeria 100 per cent, adding that what this means is that operators may not negotiate their way out of the situation even if an interest state party wishing to come into Nigeria to carry out some aspect of insurance business had not opened up their side as wide as theirs.