NAICOM, Nigerians Hail Senate For Passage Of 2024 Insurance Industry Reform Bill, See Bright Future for Sector
The National Insurance Commission (NAICOM) and some Nigerians who spoke on the passage of the new Insurance Consolidated Bill by the Upper Chamber of the National Assembly have expressed excitement over the development, saying the legislation will unlock the growth, prosperity, and potential of the insurance sector.
The passage of the Bill has marked a significant milestone in the country’s efforts to revamp the insurance industry after nearly two decades.
The Commission believes that the Bill is a game changer for the Nigeria’s insurance industry, and is going to have high positive impact on the contribution of insurance sector 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, according to NAICOM,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.
2. Risk-Based Supervision: Consolidation of the risk-based approach to supervision, enabling regulators to more effectively monitor and manage risks within the industry.
3. Strengthened Consumer Protection: Improved consumer protection requirements, safeguarding the interests of policyholders and promoting transparency and fairness in insurance practices.
4. 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.
Some Nigerians who spoke to our correspondent on the development include Engr. Sampson Emmanuel, Commended members of the National Assembly for passing the Bill.
He said the a new legislation for insurance industry in Nigeria was long overdue, adding that with the passage of the 2024 insurance industry reform bill, the industry will be repositioned to play its role well as the backbone of the nation’s economy.
In his contribution to the subject matter, Mr. Ajisafe Adeyemi, the Managing Director of Suregate Logistics, described the passage of the bill as a welcome development.
He called on all the regulatory agencies in the industry to ensure the enforcement of the provisions enshrined in the bill for the betterment of all stakeholders.
