Get Guardian on GoogleNational Insurance Commission (NAICOM) has issued new guidelines for the administration of the Insurance Policyholders’ Protection Fund (IPPF).
It also set May 31, 2026, as a deadline for operators to comply with the directive.
In a circular released yesterday, the commission said the framework provides detailed procedures for the collection, management and deployment of the fund, aimed at protecting policyholders from financial losses in the event of insurer or reinsurer insolvency.
The guideline, signed by Deputy Director, Special Risk and Security Analysis, John Falade, on behalf of the commissioner for Insurance, is backed by provisions of the Nigerian Insurance Industry Reform Act 2025 and other extant regulations.
NAICOM explained that the IPPF was designed as a statutory safety net to guarantee compensation for policyholders when licensed operators failed to meet their obligations, while also providing direction on the reimbursement of loans tied to distressed entities.
Under the new regime, all insurers, reinsurers and relevant institutions are required to submit their IPPF assessment returns for the 2025 financial year on or before May 31, with subsequent filings expected to align strictly with the provisions of the guideline.
An insurance consultant based in Lagos, Kelvin Owok, who spoke on the new guideline, noted that the introduction of a more structured and enforceable protection fund could serve as a turning point for the industry.
NAICOM reiterated its commitment to strict oversight, warning that failure to comply with the new guidelines could attract regulatory sanctions.
