Distrust clogs KYC policy on motor insurance

Motor insurance underwriting is facing delays due to a lack of trust between insurance companies, brokers, and agents, according to a report by Inspenonline. The issue stems from concerns about sharing customer information required by Know-Your-Customer (KYC) regulations.

An investigation has revealed that most insurance brokers and agents are reluctant to give vital details such as phone numbers and email addresses of their clients – motorists to insurers due to fear of losing them during the renewal period.

Insurers interviewed by this medium said the challenge is responsible for their inability to remind motor policyholders of renewal and regular interactions on insurance education.

They said the issue, which is common in third-party motor insurance business, keeps them off from the policyholders, stating that most brokers and agents do fill in their phone and email addresses as against those of policyholders.

They appealed to brokers and agents engaging in such practices to stop, stating they as risk bearers according to the law should have access to people they insure.

A top agent, who spoke to this medium about the matter said the issue would be looked into by the umbrella body of agents- the Association of Registered Insurance Agents of Nigeria (ARIAN).

Source: Chuks Udo Okonta