NPF Insurance Company decries poor insurance penetration in Nigeria

The NPF Insurance Company has expressed concerns over the low level of insurance penetration in Nigeria, calling for increased awareness and strategic partnerships to improve coverage.

Despite Nigeria’s growing economy and rising risks across various sectors, insurance adoption remains below 2%, hindered by economic constraints, poor public perception, and weak enforcement of compulsory policies.

Speaking at the Professional Brokers Meeting organised by the Abuja Chapter of the Nigerian Council of Registered Insurance Brokers (NCRIB), the Managing Director and Chief Executive Officer of NPF Insurance Company Limited, Temitayo Oke, addressed misconceptions about the company’s identity.

He emphasised that NPF Insurance is distinct from the Nigerian Police Force and is fully owned by the Nigerian Police Welfare Insurance Cooperative Society (NPWICS), a separate legal entity.

Oke highlighted NPWICS’s success in establishing reputable companies such as NPF Pensions, NPF Microfinance Bank, NPF HMO, and NPF Building Society. He explained that NPF Insurance was created to expand insurance access, ensuring that individuals and businesses are adequately protected.

Oke reassured industry players that NPF Insurance is not in competition with brokers but rather aims to complement their role in deepening insurance coverage.

“We are not NPF Brokerage Company Limited. We will not take over the roles of brokers. Instead, we are here to work with you,” he stated.

Addressing concerns from brokers, he recalled an inquiry about the impact of the company’s launch on their business. His response was clear: “Your business remains your business. We are an insurance company, and we are here to work with you, not against you.”

The event marked the company’s first engagement with brokers, reinforcing its commitment to collaboration and transparency.

Oke encouraged brokers to present proposals for partnerships, assuring them that their interests would be protected.

NPF Insurance currently operates as a general insurance company but is preparing to obtain a composite license, which will allow it to offer both life and non-life insurance products.

He reiterated NPF Insurance’s dedication to integrity, professionalism, and efficient service delivery, promising a seamless claims process and innovative products tailored to market needs.

“We are here to disrupt the market positively, not to create unnecessary competition. Our focus is on offering exceptional service,” he noted.

On its part, the Nigeria Police Force (NPF) has announced its commitment to enforcing insurance compliance among vehicle owners, emphasising that no one, including uniformed personnel, will be exempt from the crackdown.

Speaking at the event, Victor Isuku, deputy Police Public Relations Officer, who represented the Force, stated that officers trained in Abuja would be deployed to other states to educate and ensure compliance nationwide. However, he stressed that in the FCT, authorities expect “100% compliance.”

He acknowledged that some uniformed personnel have been guilty of violating regulations, using their positions to evade enforcement.

“We know you will be caught,” he warned, noting that plainclothes enforcement officers would be deployed to catch defaulters unawares.

The enforcement drive aligns with existing laws, which stipulate penalties for non-compliance.

The police official explained that the cost of ignoring the regulations would far outweigh the cost of compliance.

“If the registration costs ₦5,000, the penalty could be as high as ₦15,000,” he said, urging motorists to avoid unnecessary fines by ensuring they have the necessary insurance coverage.

He also revealed that enforcement activities would begin imminently, without prior notice.

“We don’t need to tell you when—it can start at any time,” he warned, urging officers and the public to take the message seriously and comply.

To demonstrate their commitment to accountability, members of the enforcement committee underwent screening to confirm their own compliance.

“Only one person had an expiring document, but the rest of us are fully up to date,” he stated.

He cited Nigeria’s low insurance penetration rate—less than 20%—as a major concern, attributing it to widespread distrust and religious beliefs. “Many Nigerians believe in divine will rather than insurance, but we are saying no. We must do our part while trusting in God,” he argued.

The police reaffirmed their constitutional mandate to enforce all laws and pledged intensified efforts in the coming weeks. “This is just the beginning. More enforcement activities will follow to ensure full compliance,” Victor noted.

Mac Ekechukwu, executive director of Operations at NPF Insurance Company, has reaffirmed the company’s commitment to strengthening its partnership with brokers, emphasizing their critical role in expanding insurance penetration in Nigeria.

Ekechukwu highlighted the company’s capacity to meet the needs of brokers and other stakeholders. “Our utmost desire is to satisfy and exceed the expectations of all stakeholders, with brokers at the top of that list,” he said.

The meeting aimed to address concerns in the market and reassure brokers of NPF Insurance’s readiness to do business.

“We are a business entity prepared to satisfy everyone involved, from underwriters and adjusters to reinsurers, regulators, and the Nigerian public,” he added.

Ekechukwu stressed the vast untapped potential in the Nigerian insurance sector, noting that despite the country’s population of over 200 million, insurance penetration remains alarmingly low at just 1.9%.

“The harvest is truly ripe. With a strong network of brokers, we can unlock this potential and drive industry growth,” he said.

He also acknowledged emerging challenges in the sector, including disruptions from digital and direct-to-consumer insurance models.

However, he expressed confidence that strategic partnerships would strengthen the industry rather than diminish traditional players’ roles. “If we partner together, the industry will be better for it,” he said.

Addressing concerns about NPF Insurance’s ability to handle large-scale accounts, particularly police-related policies, Ekechukwu assured stakeholders that the company would operate within its capacity.

“We are like a newborn baby—there’s a limit to what we can swallow at once. That’s why we’re here to collaborate, share, and grow sustainably,” he explained.

Ekechukwu urged brokers to begin solidifying their partnerships with NPF Insurance immediately.

“We have entered this journey, and we are not turning back. Let’s see the proof of this meeting in action by tomorrow morning,” he said.

NPF Insurance has pledged to maintain an open-door policy, encouraging brokers to engage in discussions that will drive the growth of Nigeria’s insurance sector.