According to Mahmud (2015), the concept Public policy does not have straight forward definition; rather variety of uses as the perception of the meaning, impact and significance of the policy may vary with the perspective of the participants and observers. Therefore it shows that it may be possible to have some policy programmes embracing economy as a whole, whereas others may deal with segment of it or its governance as the case may be.
Lindblom (1968) opined that “a policy is sometimes the outcome of a political compromise among policy maker”. Therefore Public policy is a decision made by powerful actors that affects the lives of many people and organizations. Perhaps these decisions on all, once the decision is taken, affected people must go along or suffer the consequences.
It is worthy to note that can be application to both Public and Private sectors. Policy decisions are made by government functionaries under the public sector (Gladden 1953), while in the privet sector it the Board of Directors of respective organizations that are vested with such policy formulation responsibilities.
Policy formulation and implementation can only be effective if sound Corporate Governance (CG) principle and ethics are established and followed. The concept Corporate Governance became prominent in recent time with the collapse mighty organization (Enron) in the USA and many others in Europe and other parts of the World of emerging economies. Syed (2012), considered CG as “the set of control mechanisms to protect the interest of different stakeholders of a corporation”.
Nigeria like other developing economies, experience under performance and collapse of corporate organizations and enterprises as a result of bad CG practice. The Nigeria Insurance Sector is not an exception. The Nigeria Government, in its quest to protect the insurance industry from eminent mal administration disaster, through its insurance regulatory agency the National Insurance Commission had in 2009 came up with the insurance industry policy (Code of Good Corporate Governance) with the sole aim of improving the governance and performance of the insurance institutions to protect the industry stakeholders. However, the recent discoveries of looming crises in the insurance institutions attributed weak Boards and bad governance has raised concern about the effective Good Corporate Governance practice. Consequently, this research is aimed at appraising the level of compliance and performance of the Insurance Industry Corporate Governance practice; unveil the inherent lapses in the policy that exposes the industry; lapses of the regulatory authority in the cause of perfuming its primary function as a regulator of the insurance industry; and lastly, this current study will design a better CG framework for the Nigerian Insurance Industry and also proffering measures that could the regulator to discharge its responsibilities effectively and efficiently.