Insurance companies that submitted a proposal for the Nigerian National Petroleum Company Limited (NNPCL) 2024 insurance program have requested the formation of an impartial committee to assess the results of the NNPC selection committee’s work.
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The request stemmed from the claimed incapacity and lack of transparency of the Risk Management and Insurance Unit during the present NNPC insurance program’s selection process, as well as the designation of Zebra Insurance Brokers as the leading insurer for the NNPC’s non-oil assets. “We are suggesting that the bid submissions of selected known top 20 practitioners (including that of Zebra Insurance Brokers) in the industry be reviewed by an independent committee and the result made public” according to the insurance broker who complained about the process and the outcome stated.
Operators have expressed dissatisfaction with the results of the selection process for the oil company’s current insurance program. They have accused the NNPC’s Risk Management and Insurance department of engaging in underhanded business practices and lacking transparency in the process of choosing insurance companies for the NNPC insurance. In particular, they have leveled complaints against Margaret Aaron, the head of the NNPC insurance unit, claiming that she has a history of engaging in business dealings ever since her removal from NAPIMS (now NUIMS) in 2020.
“This is a woman who knows nothing about the rudiments of Insurance” , said the broker who added, “The earlier the NNPC Ltd professionalises its insurance operations, the better for its image, corporate governance and stakeholders” . In order to protect themselves from NNPC abuse, a few insurance brokers who spoke with our correspondents and asked to remain anonymous questioned Zebra Insurance Brokers’ selection, claiming they weren’t worthy of leading the company’s non-asset insurance. “Zebra is unable to achieve the exercise’s cut-off score. Zebra Insurance has never made the list up to twice in the last ten years of the NNPC insurance program, and, amazingly, the same business emerged as the leader above all the big participants in the market. This is a clear manipulation and an affront to all meaningful practitioners in the market”.
They said that Zebra is a dishonest deal-maker that negotiates non-payment of claims to insureds after premiums are due, returns premiums, and lowers rates. They added that Zebra reached agreements with NNPC Ltd.’s Chief Non-Energy Investment Officer and Head of Risk Management and Insurance over the amount to be reimbursed.
