The Digest:
President Bola Ahmed Tinubu has officially signed the Nigerian Insurance Industry Reform Bill (NIIRA) into law, marking a significant turning point for the country's insurance sector. The bill consolidates outdated laws and establishes modern regulations for the industry.
Key Points:
- Comprehensive Regulations: The NIIRA 2025 brings new, stringent rules to regulate and supervise insurance businesses, aiming to strengthen the sector.
- Capital Requirements: The law introduces tough capital requirements for operators to ensure the financial soundness of insurance firms in Nigeria.
- Compulsory Insurance: The law mandates compulsory insurance policies to enhance consumer protection and safety.
- Digitisation of Insurance: The new law aims to digitize the insurance market, improving access, efficiency, and transparency.
- Efficient Claims Settlement: Zero tolerance for delays in claims settlements is a central feature of the law, prioritizing quick resolutions.
- Policyholder Protection Fund: The law establishes funds to protect policyholders, particularly in cases of insolvency, ensuring that citizens are safeguarded.
- Regional Participation: The reform will allow Nigeria to expand its involvement in regional insurance initiatives, such as the ECOWAS Brown Card System.
The NIIRA reform reflects Tinubu's commitment to modernizing Nigeria's insurance industry, contributing to the broader goal of building a $1 trillion economy. This reform could significantly enhance the industry's resilience and consumer trust.
Sources: National Insurance Commission (NAICOM), Daily Post Nigeria
