Ebere Nwoji

The Commissioner for Insurance, Mr  Ayo Olusegun Omosehin, has taken a critical look at major changes  brought to the insurance sector by the Nigerian Insurance Industry Reform Act (NIIRA2025) saying it has introduced significant updates to the regulation of the entire insurance market.

Omosehin who stated this at the 2025 annual NAICOM seminar for journalists held at Abeokuta, Ogun State also highlighted achievements made by his 16 months old administration as the Chief Executive Officer of the National Insurance Commission(NAICOM).

Describing the NIIRA as a modern rulebook for a modern market, Omosehin said NIIRA 2025  above other things strengthened financial stability of the industry enthroning the regime of stricter capital requirement and Risk Based Capital by spelling out new minimum capital of N10 billion for Life underwriting firms, N15 billion for general business and N35 billion for reinsurance firm. The new legislation according to him set up a new fund called Insurance policy protection fund for protection of policyholders in case of insurer insolvency.

He said NIIRA also  refined criteria for licensing and classifying insurers, ensuring that only robust and well-governed entities operate in the market.

He said it enhanced supervision framework that focused on the actual risks faced by insurers, enabling more effective oversight and intervention.

On Risk-Based Capital requirements,he said the new insurance Act strengthened capital adequacy standards that required insurers to hold capital commensurate with their risk profiles, protecting policyholders and promoting fair competition.

“These reforms aim to create a more resilient and competitive insurance market, ultimately benefiting policyholders and the broader economy.”The Nigerian Insurance Industry Reform Act (NIIRA) 2025 introduced key statutory provisions, including innovation hub/sandbox framework: Providing a formal structure for testing and refining innovative insurance products and services in a controlled environment, fostering creativity while ensuring policyholder protection.enhanced Data Obligations: Strengthening data reporting requirements to ensure timely and accurate information, enabling data-driven regulatory decisions and effective oversight.These reforms facilitate a more innovative, transparent, and well-regulated insurance market, ultimately benefiting both insurers and policyholders”, he pointed out.