A bill aiming for thorough reform of the nation’s insurance sector is scheduled to be considered at the committee of the whole by the House of Representatives.
After completing its second reading in the House, the bill that was sent to it by the Senate to seek concurrence has been sent to the committee of the whole to be considered.
The Senate approved the following bill on December 17, 2024:
“A Bill for an Act to Repeal the Insurance Act, Cap. I 17 Laws of the Federation of Nigeria, 2004; the Marine Insurance Act, Cap. M3 Laws of the Federation of Nigeria, 2004; the Motor Vehicle (Third Party) Insurance Act, Cap. M22, Laws of the Federation of Nigeria, 2004; the National Insurance Corporation of Nigeria, Act, Cap. N54, Laws of the Federation of Nigeria, 2004; the Nigerian Reinsurance Corporation Act, Cap. N131, Laws of the Federation of Nigeria, 2004 and Enact the Nigerian Insurance Industry Reform Act, 2004 to Provide for a Comprehensive Legal and Regulatory Framework for Insurance Business in Nigeria and for Related Matters.”
The Senate passed the measure after reviewing the Committee on Banking, Insurance, and Other Financial Institutions report, raising the minimum capital for re-insurance firms to N35 billion.
Besides re-insurance, the 2024 Nigerian Insurance Industry Reform Bill sets non-life insurance capital at N15 billion and life assurance at N10 billion.
Re-insurance firms must have N10 billion in capital, life firms N2 billion, and non-life firms N3 billion.
The reform Act combines the Insurance Act 2003, Marine Insurance Act, Motor Vehicles Third Party Insurance Act, National Insurance Corporation Act, and Nigerian Reinsurance Corporation Act.
The measure aims to improve Nigerians’ futures and provide a strong legal and regulatory framework for the insurance sector to boost the economy.
Deputy House Leader Abdullahi Ali Halims (APC, Kogi) submitted the Bill for second reading.