Monday, June 2, 2025
  • Share your story
  • About
  • Contact
Economy FootPrint
  • Home
  • News & Politics
  • Opinion
  • Finance & Economy
  • Aviation
  • Editorial
  • Transport & Blue Economy
  • Features | Analysis
  • Health | Environment
Economy FootPrint
Home Finance | Insurance | Pension

Ex-NAICOM CEO Writes NAICOM, Warns Against Registration of Police Insurance Company

EconomyFoot Print by EconomyFoot Print
August 5, 2024
in Finance | Insurance | Pension, Top News
Reading Time: 4 mins read
0
Share on FacebookShare on Twitter

By Chris Agabi

A former Commissioner of Insurance and the CEO, National Insurance Commission (NAICOM), Alh. Mohammed Kari has strongly opposed the registration of the proposed NPF Insurance Company Limited to he owned and operated by the Nigerian Police Force.
Alh. Kari with over four decades in insurance experience before retirement and now the Wazirin Bauchi believes the NPF Insurance would wield undue market advantage with potential for conflict of interest as a government security agency enforcing compulsory insurances across the country.
In his letter titled REGISTRATION OF THE NPF INSURANCE COMPANY – AN OBJECTION,
dated 25th July 2024, and addressed to the the Commissioner for Insurance/CEO National Insurance Commission (NAICOM) said he’s writing to formally object to the registration of the NPF Insurance Company Limited.
The letter made available to Economy Footprint indicated that as a former Insurer to Nigeria Police Force (NPF), a former reinsurer to NPF insurance providers and a regulator of the whole industry, a dedicated insurance company for the Police is in bad taste based on the following concerns enumerated in the letter.

1. The core operations of the Nigeria Police Force are fundamentally at odds with commercial activities. The primary mandate of the Police 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. The Police is a regulator of sorts, they can not be enforcing the law on compulsory insurance and be a provider of Insurance. The temptation to force motorist to insure with their company will be irresistible.

2. The structure and ownership requirements stipulated by Nigerian insurance laws and Financial Reporting Council necessitate a level of expertise that is currently lacking within the nominated Board of Directors and the Police force. Another requirement is a spread in ownership to avoid undue influence on the company by one shareholder.The authoritative nature of the police and their potential representation on the Board of Directors could lead to undue interference in the management of the insurance company, compromising its independence and effectiveness.

3. The Nigeria Police Force Investments have a history of mismanagement, as evidenced by the numerous issues surrounding the Nigeria Police Pension Scheme.This history raises significant doubts about the ability of the Police to effectively manage an insurance company, which requires a high level of expertise and know-how.

4. The fragmentation of the insurance business would result in the loss of valuable data and income for the industry. The entry of the Nigeria Police into the insurance market could disrupt the existing ecosystem, leading to inefficiencies and potential data loss that could harm the overall industry.

5. In case they are floating the idea of a captive, I don’t believe the Nigeria Police Force has enough business spread or expertise to support the survival of a captive company neither do they have the reputation to attract independent business. This would expose public funds to unwarranted loss.

6. The command-and-control nature of the Police force would make them take offence of a caution by a regulator. I don’t see how the Police can operate under someone’s regulation, for they would not accept commercial directive, and neither would they observe regulatory control. It would compromise the authority of the regulator if one company is seen to ignore regulatory control or out rightly disregard them, the regulator would lose his authority to regulate the market.

7. When I was an operator and their Insurer, the NPF as a consumer had detained a Head of Department and I, the CEO when we rejected to pay for a loss that was not insured on their policy. Can the CEO of an NPF Insurance Company refused to pay any demand of his owners, whether insured or not?

8. When I was a regulator, the NPF as a consumer, have requested on many occasions to obtain waivers to bypass the Nigerian Insurance Industry to place their businesses directly abroad, and on all occasions, we have refused them. (These requests were made against the advice of their Broker and Insurer) I can just imagine what they would do as a registered Insurance Company.

9. Approving this application could set a concerning precedent. It may encourage other government agencies, such as the Federal Road Safety Corps, Nigeria Customs Service,Nigerian Army, Navy, Air Force, Nigeria Civil Defence Corps, Office of the Head of Service of the Federation and others, to seek similar licenses. (And why not?). The Commission can therefore not refuse them. This proliferation of government-run insurance companies could undermine the integrity and stability of the insurance sector and reverse the government policy of divesting from business, which as you remember was 
the reason of the creation of the Bureau for Public Enterprise (BPE). I suggest you seek the opinion of the Bureau as you continue with your consideration.
Considering these concerns, I strongly urge the National Insurance Commission to reject the application for the registration of the Nigeria Police Insurance Company Limited. It is imperative to maintain the focus of the Police on their primary responsibilities and to ensure that the insurance sector remains managed by entities with the requisite expertise and independence.

Thank you for considering my objection. I trust that the Commission will make a decision that upholds the best interests of the public and the integrity of the insurance industry, the letter concluded.

The Wazirin Bauchi also copied the Honourable Minister of Finance, The Chairman,National Insurance Commission, The Chairman, Senate Committee on Banking, Insurance and Others Financial Institutions, The Chairman, House Committee on Insurance and Actuarial Matters, The Director General,Bureau for Public Enterprises and The Chairman, Nigerian Insurers Association.

Related posts

Qatar Airways Dedicates Special UEFA Champions League Livery to Bring PSG Home

Qatar Airways Dedicates Special UEFA Champions League Livery to Bring PSG Home

June 1, 2025
OPFY: Our Non-Kinetic Operations Secured Release Of Over 100 Kidnapped Victims – General Opurum

OPFY: Our Non-Kinetic Operations Secured Release Of Over 100 Kidnapped Victims – General Opurum

May 31, 2025
Previous Post

Each Governor got N15bn in Palliative Support – Tinubu in a nationwide address

Next Post

Troops Nab Gun Runner Hashimu Ahmad In Kaduna State

Next Post

Troops Nab Gun Runner Hashimu Ahmad In Kaduna State

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

BBNija’s Venita Akpofure as a token of flawed diamond

2 years ago

CDS Charges Newly Promoted Maj. Generals to Defend Democracy, Safeguard Nigerians

5 months ago

Yuletide Message: Train, Empower Nigerian Youth UYAN Boss Urges FG

1 year ago

FG receives receives interim report on Nigerian fleet

3 years ago

FOLLOW US

  • 86.2k Followers

BROWSE BY CATEGORIES

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

BROWSE BY TOPICS

2023 Benue Budget Abuja-Kaduna Rail Access Corporation Access pension airports concession Aviation Ayu Benue Budget Benue Community Buhari Business CBN Central Bank Dana Air Economy FGPL Herdsmen Herdsmen attacks insecurity insurance Maritime Min of Transport MSMEs NAICOM NCAA Nigeria Nigeria -Cameroon Border Post Nigeria Air NRac Onne Port ooh Orrom Ortom PDP PenCom pension Railway Sambo Jaji Transcorp Transcorp Group Transcorp Hotels Plc UBA Ukohol Wike Wildon Ideva

BROWSE BY CATEGORIES

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

Economy Footprint

The EconomyFootprint is published by Ideas Tent Communications Ltd®. All Rights Reserved.

Follow us on social media:

Recent News

  • Qatar Airways Dedicates Special UEFA Champions League Livery to Bring PSG Home
  • Operation Whirlwind Strikes Smugglers, Auctions Seized PMS at Subsidised Rate
  • How Support From Military High Command Help Troops To Tackle Lakurawa, bandits – Col Umar

Category

  • Aviation
  • Brands
  • Crime
  • Editorial
  • Features | Analysis
  • Finance | Insurance | Pension
  • Health | Environment
  • Industry | Trade | Commerce
  • International
  • Interview | Profile
  • News
  • Opinion
  • Politics
  • Small Business
  • Sports
  • Top News
  • Transport & Blue Economy
  • Uncategorized

Recent News

Qatar Airways Dedicates Special UEFA Champions League Livery to Bring PSG Home

Qatar Airways Dedicates Special UEFA Champions League Livery to Bring PSG Home

June 1, 2025
Operation Whirlwind Strikes Smugglers, Auctions Seized PMS at Subsidised Rate

Operation Whirlwind Strikes Smugglers, Auctions Seized PMS at Subsidised Rate

June 1, 2025
No Result
View All Result
  • Home
  • Politics
  • News
  • Sports
  • Opinion