The National Insurance Commission (NAICOM) has hailed the passage of the new Insurance Consolidated Bill by the Senate.
By Ginika Okoye
The National Insurance Commission (NAICOM) has hailed the passage of the new Insurance Consolidated Bill by the Senate.
The News Agency of Nigeria (NAN), reports that the 2024 Nigerian Insurance Industry Reform Bill is designed to provide a comprehensive legal framework for the regulation and supervision of all types of insurance businesses in Nigeria.
NAICOM in a notice in Abuja on Wednesday, said the passage of the new bill would positively impact contributions of the sector to the country’s Gross Domestic Product (GDP).
The commission said the legislation would unlock the growth, prosperity, and potentials of the insurance sector.
According to NAICOM, 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 believes that the bill is a game changer for 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 stated.
The commission said the bill would introduce several pivotal provisions aimed at fortifying the country’s insurance industry.
NAICOM highlighted some provisions of the bill to include, enhanced capital requirements, which would ensure that insurance companies were adequately capitalised to underwrite risks and protect policyholders.
Others are; Risk-Based Supervision, strengthened consumer protection to safeguard the interests of policyholders and promoting transparency and fairness in insurance practices and streamlined regulatory framework.
”This achievement comes after years of operating with laws that have failed to keep pace with the country’s evolving economic landscape.
”This is unlike other sectors that have undergone multiple phases of legislative reforms to reflect current economic realities.” (NAN)
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