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Senate Passes Insurance Industry Reform Bill, Awaits Presidential Assent

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3 hours ago

Dec 18, 2024.

The Nigerian Senate has passed the 2014 Nigerian Insurance Industry Reform Bill, marking a significant step towards consolidating various existing laws that regulate insurance businesses in the country.

Eko Hot Blog reports that the bill which was read for the second time on July 18, aims to create a more robust legal and regulatory framework for the insurance sector.

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The adoption of the report by the Committee on Banking, Insurance, and Other Financial Institutions, presented by its chairman, Mr. Adetokunbo Abiru, paved the way for the passage of the bill. The proposed legislation is now awaiting the assent of President Bola Tinubu to be enacted into law.

Mr. Adetokunbo Abiru, the chairman of the Committee on Banking, Insurance, and Other Financial Institutions, highlighted that the 2014 Nigerian Insurance Industry Reform Bill seeks to consolidate several laws currently governing the insurance sector.

These laws include the Insurance Act 2003, Marine Insurance Act, Motor Vehicles Third Party Insurance Act, National Insurance Corporation Act, and Nigerian Reinsurance Corporation Act.

The primary objectives of the bill, as outlined by the lawmaker, is to establish a robust legal and regulatory framework for the insurance sector. This will enable the industry to contribute positively to Nigeria’s financial landscape and support the overall growth of the country’s economy.

He advocated for the implementation of an effective risk-based supervision in the insurance sector, which would better address the industry’s evolving needs and ensure its continued development.

Senate Passes Insurance Industry Reform Bill, Awaits Presidential Assent

The former chief executive of Polaris Bank noted that stakeholders, during the public hearing, widely supported the bill, highlighting that existing laws no longer meet the evolving needs of the industry.

“The current insurance legislation is over two decades old and lacks provisions to address contemporary challenges and foster growth and innovation,” he said.

He also pointed out that legal obsolescence had led to regulatory inefficiencies, hampering the industry’s global competitiveness.

Mr Abiru urged the Senate to pass the bill, which would provide a comprehensive framework for the regulation of all types of insurance initiatives in Nigeria.

His colleague, Mr Jimoh Ibrahim raised concerns about the proposed minimum capital requirement of N45 billion for reinsurance businesses, suggesting the status quo should be maintained due to the current economic situation.

He highlighted that the passage of the bill was necessary to align the insurance ecosystem with contemporary economic realities, which would ultimately benefit the country.

“This Act, once it receives concurrence from the House of Representatives and assent from the President, will significantly contribute to shaping our economy for the better.