An insurance operator who spoke on condition of anonymity has expressed displeasure over the introduction of N 100, 000 advert processing fees recently introduced by the National Insurance Commission (NAICOM).
The fee, which was a nounced through a circular issued by NAICOM, took effect from April 1, 2022.
An insurance operator with one of the insurance forms told The Trumpet that the fees would discourage most underwriting companies from advertising their products or services.
He said: “The circular is coming at a time when the insurance regulator has accused the underwriters of not doing enough on an awareness campaign. “One wonders if the fees would be refunded when advert copies failed the vetting process, The Trumpet gathered.
The commission should evolve strategies to enhance their operations, especially now that businesses are not doing well.”
According to him, his company presently is working on 10 advert copies, which would amount to N10 million. The source noted that the firm would also seek approval from the Advertising Practitioners Council of Nigeria (APCON), which usually collects N25,000 per advert copy, adding that means the company would pay another N2.5 million to APCON.
The circular with reference number: NAICOM /CFI / CCMD/ AAF/ 001 dated March 28,2022 titled: Advert Processing Fees, signed on behalf of the Commissioner of Insurance, Sunday Thomas by Head, Corporate Communications and Marketing Development, Rasaq Salami, was sent to all insurance companies in the country.
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It stated that in accordance with the provision of Sec tion 74 of the Insurance Act 2003, which empowers it to review, vet and approve all advert copies of insurance companies before exposure, it had performed the role over the years, deploying its resources towards achieving the mandate.
NAICOM said in the light of the foregoing, it hereby notifies all insurance and reinsurance companies in Nigeria that henceforth, an application processing fees of N100, 000 only, would now be charged on every advert request per copy. It, therefore, urged opera tors to take cognisance of the development effective April 1, 2022.
