For years, the trust gap in Nigerian insurance was less about the products and more about the exits.
President Bola Tinubu’s assent to the Nigerian Insurance Industry Reform Act (NIIRA) 2025 officially moved the sector from a “fixed-sum” era to a “risk-based” future.
Before the signing into law of the act, in the past, when a company went under, the policyholders were often the last in line but Nigerian Insurance Industry Reform Act (NIIRA) 2025 has changed that equation.
Under Section 212 of the Act, a dedicated Protection Fund was established to be funded by the industry which will warrant every insurer and reinsurer to contribute 0.25% of their gross premium income to the safety net.
Speaking on the new law at a workshop for Journalists in Abuja, the Commissioner for Insurance, represented by his deputy technical, Usman Jankara said Nigeria’s march toward a one-trillion-dollar economy is no longer a mirage but reality.
He said NAICOM is also enforcing a dual capital test to ensure that companies hold either new Fixed Minimums or a Risk-Based Capital amount as always proportional to the “weight” of the risks it carries.
Some in-house facilitators spoke on the importance of NIIRA 2025 noting that admitted claims unlike in the past must be paid within two months of notification.
Presentations at the one-day workshop are, “Consumer Protection under NIIRA 2025, Mechanism and Benefits” and “Operationalizing the Nigerian Insurance Industry Reform Act, NIIRA 2025, Strategic Priorities and Implementation Roadmap for Enhanced Industry Growth.”