NAICOM Faces Pressure Over NPF Insurance Company Application
By Patience Ikpeme
The National Insurance Commission (NAICOM) has come under pressure following public outcry over the proposed establishment of a police insurance company, NPF Insurance Limited.
The Commission has stated that it is closely monitoring the objections and counterarguments surrounding the issuance of a license to the Nigerian Police.
Commissioner for Insurance, Mr. Olusegun Omosehin, clarified at a media conference in Lagos that NAICOM would allow the due process to unfold before making a definitive decision. While the Commission is open to licensing new firms, it emphasizes that applicants must meet the stipulated requirements.
One of the prominent figures who have objected to the licensing of NPF Insurance is the former Commissioner for Insurance, Mohammed Kari. In a letter addressed to the Commissioner for Insurance on July 25, Kari raised several critical concerns about the proposed venture.
Kari argued that the core operations of the Nigeria Police Force are fundamentally at odds with commercial activities. He emphasized that the Police’s primary mandate is to maintain law and order, not to engage in business ventures. Allowing the Police to operate an insurance company could lead to conflicts of interest and distract from their essential duties. Furthermore, he highlighted the potential for conflicts of interest as the Police would be both a regulator and a provider of insurance.
Kari also expressed concerns about the expertise and structure of the proposed NPF Insurance Company. He questioned whether the nominated Board of Directors and the Police Force possess the necessary expertise to manage an insurance company effectively. He pointed out that the authoritative nature of the Police and their potential representation on the Board could lead to undue interference in the company’s management, compromising its independence.
Additionally, Kari cited the Nigeria Police Force’s history of mismanagement in its investments, particularly the Nigeria Police Pension Scheme, as a cause for concern. He questioned the Police’s ability to effectively manage an insurance company, which requires a high level of expertise and know-how.
Kari further argued that the entry of the Nigeria Police into the insurance market could disrupt the existing ecosystem, leading to inefficiencies and potential data loss. He emphasized the importance of maintaining the focus of the Police on their primary responsibilities and ensuring that the insurance sector remains managed by entities with the requisite expertise and independence.
Aside from Kari, other stakeholders have expressed objections to the proposed NPF Insurance Company, advocating for the Police to focus on their core responsibility of ensuring the nation’s security.
