Sunday Aborisade in Abuja

Chairman of Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Adetokunbo Abiru, has said the implementation of Nigeria Insurance Industry Reform Act (NIIRA) 2025 and the ongoing recapitalisation of insurance companies will strengthen policyholder protection, boost investor confidence, and position the industry to contribute more significantly to Nigeria’s economic development.

Abiru, according to a statement by his media office on Thursday, made the comments in his goodwill message on Wednesday, October 21, after receiving an Honorary Fellowship from Nigerian Council of Registered Insurance Brokers (NCRIB).

The council conferred the honour on the senator at the 2026 Closing Dinner of the National Insurance Conference and Exhibition, held at Shehu Musa Yar’Adua Centre, Abuja, in recognition of his contributions to reforms in the insurance industry.

NCRIB particularly recognised Abiru’s engagement with industry stakeholders and his role in sponsoring the NIIRA 2025 as Senate Bill 393.

President Bola Tinubu assented to the legislation on July 31, 2025. The law introduced reforms designed to strengthen capital requirements, improve risk-based supervision, promote sound corporate governance, and enhance protection for policyholders.

In his goodwill message, Abiru described the fellowship as more than a personal achievement, saying it represents recognition of the collective efforts of the National Assembly, the executive arm of government, regulators, and industry stakeholders to reposition insurance as a stronger pillar of Nigeria’s financial system.

He stressed the importance of sustained collaboration among lawmakers, regulators and insurance professionals to ensure that the reforms delivered tangible benefits to the economy and the people.

The senator stated that Nigeria’s insurance industry had considerable potential to support economic growth, protect businesses, and mobilise long-term funds but continued to face challenges, including low insurance penetration, inadequate public awareness, and concerns about consumer confidence.

He said effective reforms were necessary to address the constraints and create an industry capable of meeting its obligations to policyholders while supporting businesses, infrastructure development, and investment.

Abiru’s position comes as insurance companies continue to adjust to the recapitalisation requirements introduced under the reform framework.

Citing a report by the National Insurance Commission (NAICOM) in August 2026, the senator stated that 43 insurance and reinsurance companies had met the new minimum capital requirements.

He said the development represented progress towards building financially stronger institutions with the capacity to underwrite larger risks, support business expansion, and provide greater protection to policyholders.

A stronger capital base, he maintained, would improve the industry’s capacity to absorb losses and support investment, while effective supervision would help ensure that operators complied with regulatory requirements.

The senator’s argument is that recapitalisation must translate into tangible benefits for customers and businesses rather than remain a financial compliance exercise.

For policyholders, stronger insurance companies and effective regulation are important for building confidence in the industry’s capacity to honour legitimate claims.

For businesses and investors, a credible insurance system provides a means of managing risks associated with commercial activities, infrastructure projects and long-term investments.

Abiru also highlighted the proposed Insurance Regulatory Commission Bill, 2026, which seeks to modernise the regulatory framework and strengthen the supervisory and enforcement capacity of the institutions responsible for overseeing the industry.

He explained that the proposed legislation would complement NIIRA 2025 by addressing the institutional requirements for effective implementation and enforcement of insurance regulations.

The senator stressed that the success of the reforms would depend not only on the quality of the legislation but also on the capacity of regulators to enforce compliance and the willingness of industry operators to maintain high professional standards.

He urged insurance brokers and other practitioners to embrace professionalism, transparency, innovation and improved customer service, emphasising that public confidence remains essential to expanding insurance coverage across Nigeria.

Abiru maintained that insurance professionals had a responsibility to demonstrate the value of their services by communicating policy terms clearly, treating customers fairly, and strengthening confidence in the industry’s ability to deliver on its obligations.

He called for sustained engagement among lawmakers, regulators, brokers and insurance companies to ensure that the reforms achieved their intended objectives.

The senator expressed gratitude to the NCRIB leadership and members for the recognition, describing the fellowship as both an honour and a renewed call to service.

He reaffirmed his commitment to working with industry stakeholders to build a more resilient, innovative, and trusted insurance sector capable of protecting policyholders, supporting businesses, and contributing more meaningfully to Nigeria’s economic development.

The NIIRA 2025 provides the statutory framework for the ongoing reforms, while the proposed Insurance Regulatory Commission Bill 2026 seeks to strengthen the institutional arrangements for regulation and enforcement.

The effectiveness of the measures will depend on implementation, compliance by insurance operators and the ability of regulators to ensure that stronger capital requirements and improved supervision produce better outcomes for consumers.

For an industry seeking to expand its reach, improved public awareness, reliable claims settlement, professional conduct and confidence in regulatory enforcement will remain critical to persuading more individuals and businesses to embrace insurance.