The Chartered Insurance Institute of Nigeria and insurance industry chief executives have endorsed the Senate’s passage of a bill to rename the National Insurance Commission (NAICOM) as the Insurance Regulatory Commission.

The stakeholders, who spoke in separate interviews on Tuesday, said the proposed legislation would enhance regulatory oversight, improve market discipline and align the insurance industry with global best practices.

The Senate on Tuesday passed a bill to repeal and re-enact the law establishing NAICOM, paving the way for the regulatory agency to be renamed the Insurance Regulatory Commission.

The bill seeks to replace the National Insurance Commission Act of 1997, which lawmakers said no longer reflects the realities of the evolving insurance sector or international regulatory standards.

It is designed to align the regulator’s name with its statutory mandate and provide legal protection for the commission and its officers against claims arising from the lawful discharge of their duties.

The president of the Chartered Insurance Institute of Nigeria, Akinjide Orimolade, described the bill as a timely intervention that would further strengthen insurance regulation in the country.

Mr Orimolade, the Stanbic IBTC Insurance’s managing director, said the legislation would empower the regulator to enforce compliance more effectively and sanction operators that fall short of industry standards.

“The bill empowers the regulator, which is good for the industry. Just as the Central Bank of Nigeria effectively regulates the banking industry, the insurance sector also requires a strong regulator with sufficient powers to discipline companies that fail to do the right thing. I think it is the right direction for the insurance industry and it is coming at the right time,” he said.

Also, the managing director of NSIA Insurance, Moruf Apampa, said the proposed name change would not alter the commission’s functions but would better reflect its expanded regulatory responsibilities.

“The change is mainly to align the name with the responsibilities assigned to the commission under the new law. It also gives the regulator greater authority to effectively regulate the insurance industry. I believe it is the right step and the right direction,” Apampa said.

Similarly, the managing director of Guinea Insurance, Ademola Abidogun, said the proposed legislation would improve regulatory effectiveness, strengthen market discipline and align Nigeria’s insurance regulatory framework with international best practices.

According to him, the new identity will also boost public confidence by reinforcing the commission’s capacity to effectively supervise the insurance industry.

“It’s beyond aesthetics. There are significant reasons behind the name change, and I believe it will strengthen the insurance industry and position it for a better future,” he said. 

(NAN)