NIGERIAN INSURANCE BOSS CALLS FOR BROKING MERGERS

Theo Elke, the managing director of Nigeria-based Union Assurance, has called on the various brokers in the Nigerian insurance sector to consolidate. Speaking on Friday at the Nigerian Council of Registered insurance Brokers (NCRIB), Mr Eke said that there were too many brokers. “I think we need a shrinking in the number and I do not see what prevents these firms from seeking out partners to merge with”. He observed that many Nigerians seemed to prefer to be sole owners of ailing companies rather than partners in successful ones, and that many broking operations simply disappeared after the death of their sole owners. Mr Eke noted that, after the banking sector underwent a degree of consolidation, banks had been able to pool resources to become more efficient. He said that “broking operations that merged could work better in the field of product development, premium recoveries and large-risk administration”.