A new bill to unlock the growth, prosperity and potentials of the insurance sector has been passed by the Senate. The new bill is tagged Nigerian Insurance Industry Reform Bill 2024, and the National Insurance Commission (NAICOM) reacting to the development said this marked a significant milestone in the country’s efforts to revamp the insurance industry after nearly two decades.
Hailing the bill as a game changer, the Commission in a statement said the Nigeria’s insurance industry would after now fly high with positive impact which would be seen in its improved contribution to the country’s GDP and economy as a whole.
By consolidating existing insurance laws, the new legislation marks a new era in the ongoing efforts to strengthen the Nigeria’s insurance industry. The bill provides a comprehensive framework for regulating all types of insurance businesses and ensuring a more robust and effective industry.
Passage of the Bill marks a significant triumph for Nigeria’s insurance industry, tackling the long-standing challenge of low insurance penetration in the country. The new legislation addresses the industry’s need for a more robust legal and regulatory framework, enabling it to compete favorably in the African insurance market and globally.
The newly passed bill introduces several pivotal provisions aimed at fortifying Nigeria’s insurance industry. Key highlights of the legislation include:
- Enhanced Capital Requirements: New minimum capital requirements for insurance companies, ensuring they are adequately capitalized to underwrite risks and protect policyholders.
- Risk-Based Supervision: Consolidation of the risk-based approach to supervision, enabling regulators to more effectively monitor and manage risks within the industry.
- Strengthened Consumer Protection: Improved consumer protection requirements, safeguarding the interests of policyholders and promoting transparency and fairness in insurance practices.
- Streamlined Regulatory Framework: An enhanced regulatory framework, providing clarity and consistency in the regulation of insurance businesses, and facilitating a more efficient and effective supervisory process.
This achievement comes after years of operating with laws that have failed to keep pace with the country’s evolving economic landscape. Unlike other sectors that have undergone multiple phases of legislative reforms to reflect current economic realities.
