The Nigerian Insurers Association (NIA) has urged President Bola Tinubu to promptly assent to the Nigerian Insurance Industry Reform Bill 2024, recently passed by the National Assembly.
NIA Chairman, Mr Kunle Ahmed, made the appeal during the first quarter 2024 briefing on the insurance industry’s performance, held in Lagos.
Ahmed said the bill seeks to modernise the regulatory framework of the Nigerian insurance sector and offer improved protection to policyholders.
He stressed that existing laws — namely the Insurance Act 2003 and the NAICOM Act 1997 — are outdated and no longer adequate for current realities.
“There are several new provisions in the bill. One key area is enhanced protection for policyholders, which we believe is a noble step,” he said.
He added that the bill provides a special fund to compensate policyholders if their insurance provider becomes insolvent or faces serious difficulties.
“This is particularly relevant given the situation with some insurance firms at the moment,” Ahmed noted during the briefing.
The bill also makes provision for a fund to support road accident victims who are uninsured, ensuring they receive necessary compensation.
“These provisions, we believe, will increase public trust in insurance and show that the laws truly protect policyholders’ interests,” he stated.
Ahmed emphasised the importance of swift presidential assent to bring the reforms into effect without delay.
He also noted that the bill addresses the need for increased capital requirements within the insurance sector.
“Although we initially proposed ₦18 billion, the bill now sets capital at ₦25 billion for composite firms, ₦10 billion for life, and ₦15 billion for non-life,” he said.
He explained that stronger capital bases would help ensure the resilience and sustainability of Nigerian insurance companies.
Ahmed added that this would enable firms to develop better products that effectively meet the needs of policyholders.
“It also ensures we can retain more risk locally while improving technical capacity to manage emerging risks,” he stated. (NAN)
