Stakeholders in the insurance sector have expressed optimism that the new Insurance Consolidated Bill passed by the Senate will drive efficiency in the sector when finally endorsed by President Bola Tinubu.

The industry players at the weekend, welcomed the passage of the bill and noted that the legislation would unlock the growth, prosperity and potential of the insurance sector.

They noted that the passage marked a significant milestone in the country’s efforts to revive the insurance industry after nearly two decades of battle.
The sector is far from meeting the local content objectives of the Federal Government as it is currently losing huge per cent of the big-ticket jobs to foreign underwriters.

The situation has made the country’s insurance industry the weakest link in the financial services sector, contrary to what happens in other climes where the insurance sector constitutes the strong asset base for long-term financing.

The bill, which increases the financial capacity of the underwriting companies, pegged non-life capital at N15 billion, life at N10 billion and reinsurance at N35 billion.

The bill was sponsored by the Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Adetokunbo Abiru, after considering the committee’s report clause by clause at the Committee of the Whole, chaired by the Deputy Senate President, Barau Jibrin.

Speaking on the development, the Commissioner for Insurance, Olusegun Omosehin, described the passage of the bill as a game changer for Nigeria’s insurance industry, saying would have a high positive impact on the contribution of the insurance sector to the country’s gross domestic product (GDP) and the economy.

“By consolidating existing insurance laws, the new legislation marks a new era in the ongoing efforts to strengthen 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,” Omosehin said.

Also speaking, the Chairman of the Insurance Industry Consultative Council (IICC), Yetunde Ilori, is optimistic that the bill would scale through the presidential assent with ease and become law in the early part of next year.

Ilori, who is also the President of the Chartered Insurance Institute of Nigeria (CIIN), added that the operators, brokers, and all other arms of the sector are working with the industry regulator, that is, the National Insurance Commission (NAICOM) to ensure smooth passage of the Consolidated Insurance Bill into Law as soon as possible.