NAICOM issues operating license to NPF Insurance Co as general insurer

The National Insurance Commission (NAICOM) on Friday announced that NPF Insurance Co. Ltd. licensed to operate as a general insurance company.

This development enables NPF Insurance to commence general insurance operations in Nigeria by successfully fulfilling all registration requirements.

Licensed by NPF Insurance Co. at its office in Abuja. Ltd. Insurance commissioner, Olusegun Ayo Omosehin, congratulated the company for meeting all necessary regulatory standards and expressed confidence in the potential of NPF Insurance to contribute to the development of the industry.

Mohammed Kari, who was once an insurance commissioner and a major player in the Nigerian insurance industry, had objected to the licensing of NPF Insurance Company Limited by the industry regulator, NAICOM.

Kari, who currently sits in a traditional seat as Wazirin Bauchi, conveyed his position in a letter dated July 25, 2024, addressed to the insurance commissioner/CEO of NAICOM, copy of which was sent to the finance minister; chairman of the National Insurance Commission; Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions; Chairman of the House Committee on Insurance and Actuarial Matters; Director general of the Bureau of Public Enterprises and president of the Nigerian Association of Insurers.

He said: “I am writing to formally object to the registration of NPF Insurance Company Limited and my objection is based on several critical concerns which I believe should be given serious consideration.”

NAICOM, in an advertising article published in some national newspapers, said it had received an application from NPF Insurance Company Limited to register as an insurance company to carry on insurance business in Nigeria.

“In order to fulfill the legal provisions of the scope laws regarding the registration/licensing of insurance companies, the public is informed that the Commission has initiated the registration process of the company. We kindly request the public to forward/report any objections or disagreements regarding these registrations to the Commission within 21 days from the date of this publication.”

Muhammed Kari, who spent 44 years in the insurance industry as an actor between 1979 and 2023, said the following in his nine-point concerns:

“The core operations of the Nigerian Police Force are fundamentally at odds with business activities. The primary duty of the police is to maintain law and order, not to engage in commercial ventures. Allowing the police to run an insurance company could create conflicts of interest and distract from their primary mission. The police are a regulator of sorts, they cannot enforce compulsory insurance law and cannot be insurance providers. “The temptation to force drivers to take out insurance with their own company will be irresistible.”

According to him, “The structure and ownership requirements prescribed by Nigerian insurance laws and the Financial Reporting Council require a level of expertise that is currently lacking within the appointed Board of Directors and the Police force. Another requirement is the distribution of ownership to prevent undue influence of a shareholder over the company.” “The authoritarian nature of the police and their potential representation on the Board of Directors may lead to undue interference in the management of the insurance company, compromising the independence and effectiveness of the company.”

Kari further said: “The Nigerian Police Force Investments has a history of mismanagement, as evidenced by the numerous issues surrounding the Nigerian Police Pension Scheme. This history raises significant doubts about the ability of the Police to effectively manage an insurance company, which requires high levels of expertise and It requires knowledge.”

“Fragmentation of the insurance industry will result in the loss of valuable data and revenue for the industry. “The entry of the Nigerian Police into the insurance market could disrupt the existing ecosystem, leading to inefficiencies and potential data loss that could harm the overall industry.”

“Should they come up with the captive idea, I do not believe the Nigerian Police Force has sufficient business spread or expertise to support the survival of a captive business or has the reputation to attract independent businesses. “This will result in undue loss of public funds.”

He also noted: “The command and control structure of the police force would make them resentful of a regulator’s warning. I don’t see how the police can operate under anyone’s regulation, because they do not accept commercial directives and do not comply with regulatory controls. It is clear that a company is ignoring regulatory control or justifiably exercising it.” “If it is seen to ignore it, the regulatory authority’s authority will be compromised and the regulator will lose its authority to regulate the market.”

“When I was an operator and their Insurer, NPF, as a consumer, arrested a Department Head and me, the CEO, when we refused to pay for a loss not insured under their policy. “Can the CEO of an NPF Insurance Company refuse to pay any claim of its owners, whether insured or not?”.

“During my tenure as regulator, NPF, as a consumer, has on many occasions requested exemptions to take their business directly overseas, bypassing the Nigerian Insurance Industry and we have rejected them on all occasions. (These requests were made against the advice of the Broker and Insurer) A Registered Insurance “I can imagine what they would do as a company.”

“Approval of this application could set a worrying precedent, encouraging other government agencies such as the Federal Road Safety Corps, Nigerian Customs Service, Nigerian Army, Navy, Air Force, Nigerian Civil Defense Corps, Office of the Chief of Service of the Federation and others to seek similar licences. (And why not?) This is why the Commission cannot reject them. This proliferation of state-run insurance companies could undermine the integrity and stability of the insurance industry and, as you remember, is the reason for the establishment of the Bureau of Public Enterprises (BPE). “What is happening could reverse the government’s redundancy policy and I suggest you seek the Bureau’s opinion as you continue your assessment.”

In its prospectus, NAICOM listed the board members of NPF Insurance Company Limited as follows: Oke Temitayo, managing director/CEO; Adenaike Olufemi Adebowale (AIG Rtd); Ekechukwu Mac; CP Suleiman Muhammad; CSP Ameh Lydia; CSP Adedeji Adewole Julius; Amore Olusola Emmanuel, CP. (Rtd); Pastor Paul –Odeli Joshua; Balogun Oluyinka Abayomi; Akinwunmi Tunde Olufemi; and Moses Ba’aba Abraham.

Based on these concerns, Kari strongly appealed to NAICOM to reject the registration application of the Nigerian Police Insurance Company Limited, stating that it was imperative to ensure that the police focus on their primary responsibilities and ensure that the insurance industry continues to be managed. by organizations with the necessary expertise and independence.

Mohammed Kari is an active player in the Nigerian Insurance industry from 1979 to 2023. During this period, he served as managing director/CEO of Nigerian Reinsurance Corporation and NICON Insurance Plc and later as insurance commissioner/director general of the National Insurance Commission (NAICOM). ).