The House of Representatives has passed the bill to reform the insurance sector in Nigeria, providing for the recapitalisation of insurance companies in the country, while providing stiffer penalties for defaulters.
The law which recognises two classes of insurance in the country (life and non-life insurance) increased minimum capital requirement across the various classes of insurance.
The bill, when signed into law will repeal the Insurance Act 2004, the Marine Insurance Act, 2004, the Motor Vehicle (third party insurance) Act 2004, the National Insurance Corporation of Nigeria Act, 2004 and the Nigeria Reinsurance Corporation Act, 2004.
The bill which was passed by the Senate on December 17, 2024 will regulate the insurance industry and protect the interest of policy holders, prospective policy holders and other stakeholders under insurance policies in a way that is consistent with the continued development of a viable competitive and innovative insurance industry.
It will also determine who carries out insurance business in Nigeria and require insurance operators, directors and management of insurance operators to meet certain suitability requirements.
