NAICOM Hails Passage of New Insurance Consolidated Bill, Forecasts Bright Future for Nigeria’s Insurance Sector

The CEO, Olusegun Ayo Omosehini of National Insurance Commission (NAICOM) and Commissioner for insurance has lauded the Nigerian Senate for the landmark passage of the new Insurance Consolidated Bill, describing it as a pivotal step towards unlocking the full growth potential of Nigeria’s insurance sector. The legislation, passed after nearly two decades of calls for reform, marks a significant milestone in the nation’s pursuit of a modernized and robust insurance industry capable of driving economic development.

The Commission emphasized that the new Insurance Consolidated Bill is a “game changer” that will enhance the sector’s contribution to Nigeria’s GDP and position it as a key driver of the economy. By harmonizing existing laws and introducing critical reforms, the legislation lays a solid foundation for a more vibrant, transparent, and competitive insurance market—both within Africa and on the global stage.

For years, the Nigerian insurance sector grappled with outdated regulatory frameworks that hindered its ability to adapt to modern economic realities and address persistently low penetration rates. NAICOM believes this legislation will address those challenges by bolstering the sector’s capacity to underwrite risks, protect policyholders, and attract investment.

Key Highlights of the New Insurance Consolidated Bill:

1. Enhanced Capital Requirements: The legislation establishes stricter minimum capital thresholds for insurance companies, ensuring they are adequately funded to underwrite risks and provide financial security for policyholders.

2. Risk-Based Supervision: The bill solidifies a risk-based approach to regulatory oversight, enabling NAICOM to proactively identify and manage risks across the industry.

3. Strengthened Consumer Protection: Provisions to enhance policyholder protection include greater transparency, fairness, and accountability from insurance providers.

4. Streamlined Regulatory Framework: The consolidation of existing laws under a unified framework ensures greater clarity, consistency, and efficiency in the regulation and supervision of insurance businesses.

A Transformative Milestone

NAICOM underscored that the bill’s passage signals a transformative era for Nigeria’s insurance sector, positioning it to play a more prominent role in the nation’s economic growth. It also aligns the sector with global standards, enabling Nigerian insurance operators to compete effectively across regional and international markets.

The Commission expressed optimism that the strengthened legal and regulatory framework will drive confidence among stakeholders, attract new investors, and expand insurance coverage to underserved demographics.

In reflection, this achievement not only marks the culmination of longstanding efforts but also serves as a catalyst for an industry poised to contribute significantly to Nigeria’s journey towards sustainable economic prosperity. As NAICOM embraces this new chapter, stakeholders across the sector are called to leverage the opportunities created by this progressive legislation to build a more resilient and inclusive insurance market for the future.