The Insurance Industry Reform Act (NIIRA) could unlock fresh opportunities for growth, trust and financial inclusion in the country’s risk-management market, industry leaders have said, urging operators to seize its potential beyond compliance with fundraising.
Speaking at the industry leaders’ engagement at the weekend in Lagos, regulators and market executives described the landmark law signed by President Bola Tinubu in July as more than a regulatory overhaul.
They said its provisions for higher capital, risk-based supervision, clearer contracts and simplified products could make insurance a visible contributor to Nigeria’s $1 trillion economy target if properly implemented.
The Director of Legal, Enforcement and Market Development at the National Insurance Commission (NAICOM), Tamis Usman, said the reforms were designed to give operators stronger balance sheets while making the market easier to access for households and small businesses.
He said the new capital tiers of N10 billion for Life, N15 billion for non-life and N35 billion for reinsurance would allow firms to absorb larger risks and retain more premium income locally.
“The second layer, which is risk-based capital, ensures that an underwriter’s capital aligns with its exposure. This builds confidence that whoever is underwriting a class of business has the financial strength to pay claims,” Usman said.
He added that NIIRA’s new rules on policy documents and simplified proposal forms would make insurance contracts more transparent and help rebuild public trust.
Also speaking, the Executive Director of Business Operations at emPLE Assurance, Makanjuola Tobi, said the sector’s growth prospects would depend on tapping Nigeria’s largely uninsured informal economy, which accounts for around 60 per cent of GDP.
“We must quickly latch on to the untapped market,” he said, adding: “If informal workers remain outside the net, the industry’s contribution to GDP will stay low.”
Panalists agreed that NIIRA’s success would hinge on steady enforcement, product innovation and strategic partnerships with other sectors such as pensions, microfinance and technology.
