NAICOM sees new Consolidated Bill boosting economic growth

The National Insurance Commission (NAICOM) has applauded the passage of the new Insurance Consolidated Bill by the Senate, viewing it as a game-changer for the insurance sector.

The commission is optimistic that the new legislation will boost the insurance industry’s contribution to Nigeria’s GDP and economic growth.

Segun Omosehin, commissioner for Insurance/CEO, NAICOM, said the consolidation of the laws marked a new era in the ongoing efforts to strengthen the 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 favourably in the African insurance market and globally.”

“Addressing low insurance penetration: The bill aims to tackle the long-standing issue of low insurance penetration in Nigeria, helping the sector compete more effectively in the African and global insurance markets.

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Key highlights of the legislation as listed by the commission include enhanced capital requirements, new minimum capital requirements for insurance companies to ensure they can underwrite risks and protect policyholders.

Risk-based supervision: A risk-based approach to supervision that helps regulators manage industry risks more effectively.

Strengthened consumer protection: Improved consumer protection to ensure fairness, transparency, and the safeguarding of policyholders’ interests.

Streamlined regulatory framework: A clearer and more efficient regulatory system for the insurance industry.

The legislation, NAICOM noted, addresses the need for modern laws to keep up with Nigeria’s evolving economic landscape, filling the gap left by outdated laws in the sector.