By Henry Uche
Commissioner For Insurance, and Chief Executive of the National Insurance Commission of Nigeria, NAICOM, Mr. Olusegun Ayo Omosehin, has described the Nigerian Insurance Industry Reform Act (NIIRA) 2025 as a game changer which guarantees a recapitalized, stronger, and stable insurance institutions for the benefit of insurance industry and Nigerian at large.
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The Commissioner made this known in a monitored interview following the signing of the Bill into law by President Bola Tinubu. While appreciating the President and committees on insurance at the National Assembly, Omosehin affirmed that the piece of legislation has the capability to reverse the negative narrative and perception most Nigerians hold against insurance business in Nigeria.
Omosehin maintained that the piece of legislation is not effective without the requisite actions needed to achieve results, hence the need for operators, insurance brokers, industry watchers and other stakeholders to work in synergy for its implementation in real time.
“This is what is required for a modern insurance sector to thrive. Of course the law actually mandates a new minimum capital requirement, which also includes the requirement around risk -based capital. What this would do for us in this situation is we would be able to have more capitalized, stronger, and stable insurance institutions that can actually provide the necessary backing that our country, Nigeria requires.
“More importantly is the fact that the risk-based capital has added a framework that allows for institutions to be measured based on their risk exposure, as opposed to the one-size-fits all kind of arrangement that we had in the old law. Apart from this is the requirement around expansion of compulsory insurances, also the mandate for insurance institution to do more on their digital system of the insurance ecosystem.”
He added that potential and prospective policyholders are in a better position to gain more from the legislation. According to him, issues about claims delay or denial would be a thing of the past as there are better channels of communication to resolve problems.
“But more important is the fact that the regulator is not left alone in this. We now have a situation where the regulator has more powers of enforcement and oversight over the institutions that operate in the sector. So in a nutshell, I will say it i a win-win for every stakeholder in this regard, more importantly, to the insurance consumer. This is a main breakthrough. So let’s get on board,” he urged.
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