The bill also broadens the commission’s mandate to ensure the efficient administration, supervision, regulation, control, integrity, and development of Nigeria’s insurance industry.
The Senate on Tuesday passed a bill seeking to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission.
The upper chamber approved the bill after considering the report of its Committee on Banking, Insurance and Other Financial Institutions, presented by its chairman, Adetokunbo Abiru.
The Senate President, Godswill Akpabio, announced the bill’s passage after it received majority support via a voice vote.
The bill was sponsored by Mr Abiru, along with other members of the Senate Committee on Banking, Insurance and Other Financial Institutions.
Mr Abiru, while presenting the committee’s report, explained that the proposed name change was due to the current name becoming confusing in light of the evolution of Nigeria’s insurance industry and no longer accurately reflecting the commission’s regulatory mandate.
NAICOM is the apex regulatory authority for Nigeria’s insurance sector. It is responsible for ensuring compliance with insurance laws and regulations, promoting market stability, and protecting policyholders.
Aside from the proposed change of name, Mr Abiru said the bill introduces tougher enforcement measures, including higher fines, suspension of licences, and the disqualification of individuals found responsible for the failure of insurance institutions from holding positions within the industry.
He explained further that the bill also updated the provisions on supervision, inspection, and intervention to address current industry challenges, such as the need for prior ministerial approval to remove or appoint directors of failing or distressed insurance institutions. The bill further requires the Minister of Finance to constitute an interim management committee for the commission within 30 days of the expiration or termination of the tenure of its governing board.
Mr Abiru said the legislation also expands the commission’s mandate to ensure the effective administration, supervision, regulation, control, integrity and development of insurance business in Nigeria.
After the presentation of the committee’s report, the Senate dissolved into the Committee of the Whole, where the bill was considered clause-by-clause and passed for third reading.
Mr Akpabio thereafter commended Mr Abiru for sponsoring the bill, assuring that the National Assembly will continue to reform the insurance industry to make it stronger and more effective than it inherited.
The bill will now be transmitted to the House of Representatives for concurrence before forwarding it to President Bola Tinubu for assent.
