President Bola Ahmed Tinubu has officially signed the Insurance Reforms Bill into law, marking a significant milestone in the transformation of Nigeria’s insurance sector. The new legislation aims to modernize the industry, enhance transparency, and strengthen public trust in insurance services across the country.
The bill, which has been in deliberation for months at the National Assembly, introduces a comprehensive regulatory framework designed to align Nigeria’s insurance industry with international best practices. It also seeks to address long-standing issues of policyholder dissatisfaction, delayed claims, and undercapitalized operators.
According to the presidency, the signing of the bill signals the administration’s commitment to improving investor confidence and expanding financial inclusion through a vibrant and trustworthy insurance sector. The law will now empower the National Insurance Commission (NAICOM) with broader oversight capabilities and enforcement powers.
A key feature of the bill is the mandatory digitalization of insurance services, which will require all licensed operators to adopt modern technology in policy management, customer onboarding, and claims settlement. This move is expected to reduce fraud, ensure traceability, and boost operational efficiency.
The new law also raises the minimum capital requirements for insurance providers, a change that aims to eliminate weak firms and promote a more stable, competitive market. Existing operators will be given a transition period to meet the new standards or face mergers, acquisitions, or exit from the industry.
President Tinubu, in his remarks during the signing ceremony, stated that the reforms are not only regulatory but also strategic for national development. “Insurance is a pillar of any growing economy. With this law, we are creating an environment that promotes innovation, accountability, and growth,” he said.
Industry stakeholders have applauded the move, describing it as long overdue. The President of the Nigerian Insurers Association (NIA) noted that the law provides a much-needed roadmap for the industry's modernization and will encourage more Nigerians to embrace insurance as a necessary financial tool.
The bill also includes consumer protection provisions, mandating prompt settlement of genuine claims and empowering policyholders with greater rights to information and recourse. This is expected to significantly reduce mistrust and improve the image of the sector among the public.
Analysts predict the implementation of the new law could lead to a spike in insurance penetration, which remains below 2% in Nigeria. With digital access, stronger regulation, and investor protection, the insurance industry is poised for rapid growth.
As the federal government moves into the next phase of implementation, the insurance sector is expected to undergo major restructuring. President Tinubu’s latest legislative action adds to a series of economic reforms aimed at repositioning Nigeria as a destination for responsible business and financial innovation.
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