……Envisions a Promising Future for the Sector
Barbara Bako, Abuja.
The National Insurance Commission (NAICOM) has warmly accepted the passage of the new Insurance Consolidated Bill by the Upper Chamber of the National Assembly and is optimistic that the legislation will unlock the growth, prosperity, and potentials of the insurance industry.
The Commission in a statement on Tuesday in Abuja, said 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 considers that the Bill is a game changer for the Nigeria’s insurance business, and is going to have a positive influence on the contribution of the sector to the country’s GDP and economy as a whole.
NAICOM also stated that by consolidating existing insurance laws, the new legislation marks a new era in the ongoing efforts to strengthen 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.
NAICOM further highlight of the legistlation stating that the newly passed bill will further introduce several pivotal provisions aimed at fortifying Nigeria’s insurance industry.
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The highlights include: “Enhanced Capital Requirements: New minimum capital requirements for insurance companies, ensuring they are adequately capitalized to underwrite risks and protect policyholders and Risk-Based Supervision: Consolidation of the risk-based approach to supervision, enabling regulators to more effectively monitor and manage risks within the industry.”
While others are “Strengthened Consumer Protection: Improved consumer protection requirements, safeguarding the interests of policyholders and promoting transparency and fairness in insurance practices and 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.”
The commision stated that the success comes after years of working under rules that have failed to keep pace with the country’s shifting economic landscape unlike other sectors that have undergone many waves of legislative adjustments to reflect current economic realities.
