The Nationwide Insurance coverage Fee (NAICOM), has issued an operational licence to Nigeria Police Drive (NPF) Insurance coverage Firm Restricted to start common insurance coverage enterprise in Nigeria.
That is coming regardless of a latest opposition from some stakeholders within the insurance coverage sector who objected to the thought of granting insurance coverage licence to the group.
In line with a discover by NAICOM on its official X (previously Twitter) account on Friday, November 29, 2024, the insurance coverage regulator stated NPF Insurance coverage Firm Ltd was introduced with the operational licence having efficiently fulfilled all registration necessities.
The licence was handed over to NPF Insurance coverage by the Commissioner of Insurance coverage, Olusegun Ayo Omosehin, in his workplace in Abuja, the place he congratulated the corporate for assembly all the required regulatory requirements, and expressed confidence in its potential to contribute to the event of the business.
The discover from NAICOM reads, ‘’NAICOM immediately, November 29, 2024, introduced an operational license to NPF Insurance coverage Co. Ltd to start common insurance coverage operations in Nigeria, having efficiently fulfilled all registration necessities.’’
What it’s best to know
NAICOM had in July 2024 introduced that it had commenced the method of registering the NPF Insurance coverage Firm Restricted after receiving the appliance.
The fee stated the corporate was included on December 24, 2020, with the handle on the Insurance coverage Constructing Behind Louis Edet Home, Drive Headquarters Space 11 Garki, Abuja, FCT.
Nevertheless, in August 2024, stakeholders within the insurance coverage business stated granting operational licence to the Nigeria Police Drive (NPF) would compromise the enforcement of the 6 obligatory insurance coverage merchandise out there.
A former Commissioner for Insurance coverage, Mohammed Kari, in a letter to the fee, suggested that if the NPF Insurance coverage Firm Restricted is granted an operational licence, there may very well be a compromise within the administration and enforcement of obligatory insurance coverage insurance policies.
Kari famous that the authoritative nature of the police and their potential illustration on the Board of Administrators of the insurance coverage agency may result in undue interference within the administration of the insurance coverage firm, compromising its independence and effectiveness.
The ex-insurance practitioner stated the core operations of the NPF are basically at odds with industrial actions, including that the first mandate of the Police is to keep up legislation and order, to not have interaction in enterprise ventures.
He stated, “The Police are a regulator of kinds; they can’t implement the legislation on obligatory insurance coverage and be a supplier of insurance coverage. The temptation to pressure motorists to take their firm’s coverage can be irresistible.’’
Kari stated the construction and possession necessities stipulated by Nigerian insurance coverage legal guidelines and the Monetary Reporting Council (FRC), necessitate a degree of experience that’s presently missing within the nominated Board of Administrators of the proposed insurer.
He added, “One other requirement is a diffusion in possession to keep away from undue affect on the corporate by one shareholder. The NPF Investments have a historical past of mismanagement, as evidenced by the quite a few points surrounding the Nigeria Police Pension Scheme. This historical past raises vital doubts concerning the capacity of the Police to successfully handle an insurance coverage firm, which requires a excessive degree of experience and know-how.’’
Kari stated the entry of the Nigeria Police into the insurance coverage market may disrupt the prevailing ecosystem, resulting in inefficiencies and potential information loss that would hurt the general business.
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