The National Insurance Commission (NAICOM) and key stakeholders in the insurance industry have hailed the Senate’s passage of the Nigeria Insurance Industry Reform Act, 2024, as a pivotal development for the sector.
The legislation, which replaces several existing laws, introduces a risk-based regulatory framework and increases minimum capital requirements for insurance businesses.
Non-life insurance companies must now have a minimum capital of ₦15 billion, life insurance businesses ₦10 billion, and reinsurance companies ₦35 billion — a significant rise from the previous thresholds of ₦3 billion, ₦2 billion, and ₦10 billion, respectively.
In a statement on Wednesday, NAICOM described the new Bill as a game changer, highlighting its potential to enhance the insurance industry’s contribution to Nigeria’s GDP.
“The Bill marks a significant milestone in the country’s efforts to revamp the insurance industry. It consolidates existing laws and provides a comprehensive framework to regulate insurance businesses effectively,” the Commission stated.
The president of the Nigerian Council of Registered Insurance Brokers, Babatunde Oguntade, welcomed the development but noted the need to review the details of the Bill.
Similarly, Edwin Igbiti, former president of the Chartered Insurance Institute of Nigeria, said the increased capital requirements would lead to a more robust industry, fostering mergers, acquisitions, and professional training.
The Bill also focuses on consumer protection, transparency, and risk-based supervision, equipping regulators to monitor industry risks more effectively.
Stakeholders anticipate that the reforms will enable Nigeria’s insurance sector to compete favorably in Africa and globally.