With the recent passing of the Insurance Sector Reform Bill by the House of Representatives, Ebere Nwoji reports that all eyes are on presidency for assent to the bill expected to kickstart insurance sector reforms

One of the greatest shocks which struck insurance sector operators at the end of former President Muhammadu Buhari’s eight years regime, which lasted from May 29th 2015 to May 29th 2023, was the administration’s failure to sign into law the Consolidated Insurance bill.

To insurance sector operators, the bill which has been lying on the table of lawmakers since the year 2010 holds the future of insurance sector as most of the laws in the prevailing 2003 insurance Act have been overtaken by events.

This being the case, the sector needed presidential assent to the bill more than any other thing during Buhari’s regime but this did not happen as the insurance bill suffered total neglect by the Buhari Administration.

Operators’ Feelings

Indeed, with the former president’s endorsement of eight bills into law few days before the expiration of his tenure excluding the much expected Consolidated Insurance bill which was already passed by the two chambers of the 9th National Assembly, the insurers concluded that the regime of Buhari had no regard for the insurance sector having met the bill unattended to and left it unattended to.

Against this back drop, the insurers decided to take their fate by their hands by returning to the drawing board to repackage and present another bill tagged, “Insurance Sector Reform Bill,” to the present 10th National Assembly.

With the passing of the bill by the law makers, all eyes are now on president Ahmed Bola Tinubu for the final endorsement for a new Act.

Insurers’ Efforts

From the onset of their resolution to present a fresh bill to the 10th National Assembly, the insurers were advised not to leave any stone unturned in their push for early passage of the bill especially during President Ahmed Tinubu’s first tenure.

The Nigerian Insurers Association (NIA) shortly after the operators’ disappointment with Buhari’s administration for non-assent to the bill, said it would collaborate with NAICOM to finalise issues surrounding the signing into law of the bill.

THISDAY recalls that before his appointment as the present Commissioner for Insurance, Mr Olusegun Ayo Omosehin, as the then NIA Chairman led the NIA leadership to meet the Chairman House Committee on Insurance and Actuarial Matters of the House of Representative, Hon. Ahmed Jaha to seek support for the bill.

He craved his support to ensuring that the bill received the needed attention that would lead to its passage into Act.

Little wonder why barely one year into his assumption of office as the present commissioner for insurance and Federal Government’s adviser on insurance matters, the Insurance Sector Reform Bill has been passed by the two chambers of the National Assembly.

National Assembly

It will be recalled that on December 16, 2024, the senate passed the Insurance Reform Bill with the highlight being the approval of M25 billion minimum capital for non-life insurance firms, N15 billion for life and N35 billion for reinsurance firms. This was hailed by NAICOM and just a week ago, the House of representative passed the insurance bill with NAICOM describing it as Landmark achievement and a significant milestone towards transforming Nigeria’s insurance sector.

Commenting on the latest passage of the bill by the law makers, Omosehin said: “The commission is enthusiastic about the prospect of the bill receiving assent from Mr President which will pave the way for the implementation of its provision.”

Now that the bill has been passed early enough by the law makers the earnest expectation is to ensure its assented by the president.

Recommendations

Industry observers made some recommendations on how the sector could realise this dream of having the bill secure presidential assent.

They said with the passage of the bill by the two chambers of the National Assembly within the first tenure of the president, the bill this time has far much chances and opportunity of receiving presidential assent before his exit.

This, they said, is quite unlike the insurance Sector Consolidated bill which was passed by the both chambers during Buhari’s last tenure.

But the industry analysts said the insurers should not allow a repeat of the ugly situation during Buhari’s time by relaxing waiting for the president to assent to it.

Rather, they said the industry should unite to push for president’s recognition making use of relevant connections that are capable of presenting their case directly before the president.

“Both the operators and the regulator should instead of relaxing intensify push using various means to ensure the bill secures a place in the next set of bills to be assented to by the president” they advised.

Speaking, former Chairman NIA and  Principal Consultant  Carefirst Consult,  Mr Gus Wiggle, said though one may not know much about what goes into a bill after it has been passed by both Houses before receiving the President’s assent, his advice would be that whatever all parties have done to push the bill to where it is today, they should not relent but continue to push on until it receives the President’s  signature and it becomes a law.

“I have taken this cautious position because of the last experience with the Buhari’s government. Having said that, it is my view that facilitating presidential assent for the Insurance Bill requires strategic efforts from both insurers and the government. Considering the bill’s history, and how long it has been in the works. Overall, the passage of the bill will be a significant step forward, and all stakeholders are eagerly awaiting the President’s assent to bring the new regulations and standards into effect,” he stated 

On his part, National Coordinator, Progressive Shareholders Association of Nigeria (PSAN), Boniface Okezie, said as good as the passage of the bill is the problem with the Nigeria Insurance Industry is not just about passing the bill but implementing it to the later.

He asked, Now, that the bill has been passed and everybody is praying for president to assent to it when signed into law who will implement it Naicom? I doubt it.

He said the passage of the bill was very good and NAICOM has the right to be jubilant, “but when signed into law by government which would definitely happen, the same government that signed the  law will be the first to break it through its failure to patronise the sector by insuring its assets as required by the law. But the problem facing insurance sector cannot just be solved by the president assenting to the bill and enthroning the regime of new law in the industry. Government must lead others in patronising   the insurance sector by insuring all its assets with indigenous insurance underwriting firms not with foreign firms. We like foreign things but let them show example by making the laws work through insurance of their own assets. NAICOM itself should regulate to keep the souls of the companies alive,“ he stated.

Conclusion

Industry analysts said with passage of the Insurance Reform bill by the law makers, insurance operators, regulator and other stakeholders in the sector should see it that it is now that the main work has started.

According to them the insurers in their different trade groups should join force together using high level lobby group to ensure their case gets directly to the president. The analysts are of the opinion that if the insurers fail to get the much-needed new law in place during this Tinubu’s regime, it would be very difficult for them to get it again.