The Nigerian Senate on Tuesday passed the Nigerian Insurance Reform Bill, 2024, following its third reading.
The bill, which consolidates various existing insurance laws, was adopted after the presentation of a report by the Committee on Banking, Insurance, and Other Financial Institutions, chaired by Senator Adetokunbo Abiru (Lagos East).
According to Senator Abiru, the bill merges key legislations governing the insurance sector, including the Insurance Act (2003), Marine Insurance Act, Motor Vehicles (Third Party Insurance) Act, National Insurance Corporation of Nigeria Act, and Nigerian Reinsurance Corporation Act. This consolidation aims to modernize the legal framework and ensure alignment with global best practices.
A notable provision in the bill is the reduction of the minimum capital requirement for reinsurance businesses from N45 billion to N35 billion, a move expected to ease entry into the sector and encourage growth.
Senator Abiru highlighted the importance of this reform in creating a robust regulatory environment for the insurance industry, enabling it to make a meaningful contribution to Nigeria’s financial stability and economic development.
“The existing rule-based supervision framework enabled by the current laws has become outdated. To make Nigeria a financial hub for Africa and one of the 20 largest economies in the world, there is an urgent need to adopt effective risk-based supervision within the insurance regulatory system,” Abiru stated.
The lawmaker further emphasized the bill’s role in securing a better financial future for Nigerians, noting that a strengthened insurance sector would provide vital financial assistance and support to individuals and businesses.
READ ALSO: President Tinubu to present 2025 Appropriation Bill to National Assembly next Tuesday
#Senate #Nigerian #Insurance #Industry #Bill
