Amid harsh economic environment that has forced many sectors and businesses under, insurance industry waxed strong with activities in 2024, and those activities will spill over into 2025, CHRIS EBONG writes.
Passage of Consolidated Insurance Bill 2024 by the Senate
The most recent and perhaps the most crucial initiative that took place in 2024 and will transform the insurance industry in the subsequent years was the passage of Consolidated Insurance Bill 2024 by the Senate.
The Bill which has been with the upper house for years was finally passed into law by the Senate.
It is believed that the Bill when finally receives the assent of the President, and Commander-In-Chief of the Federal Republic of Nigeria, insurance sector will not be the same again in the coming years.
Key issues in the new bill are the possibilities that it will usher in a new minimum capital regime for the sector and the National Insurance Commission (NAICOM) may commence the enforcement of Risk Based Capital initiative proposed in the document.
Insurers Frown At 18 Months Transfer Of Microinsurance Portfolio
In a separate development, the National Insurance Commission had announced 18 months as deadline for insurance companies currently operating microinsurance portfolio under General Business to migrate and register the unit as a full-fledged limited liability companies.
This implies that these new set of companies will be qualified as insurance entities with their boards and managements in place.
In 2025, investors will know how many companies have complied with this directive or jettison the portfolio.
FG Dissolves NAICOM Board, Appoint New CFI, Others
In the second quarter of the year 2024, the Federal Government announced the dissolution of the board of the National Insurance Commission and reappointed a new team headed Mr Olusegun Ayo Omosehin as the substantive Commissioner for Insurance (CFI) for five-year tenure. Mr Omosehin took over from Mr Olorandare Sunday Thomas.
NAICOM Sacks Board, Mgt Of African Alliance
During the year, the National Insurance Commission (NAICOM) summoned the board of the African Alliance Insurance Plc to its Abuja office on account of non-payment of annuity benefits to the annuitants which caused public outcry.
The meeting, notwithstanding led to the sack of the board and management of the life insurance company.
The Commission later took over the management of the firm and appointed a new management to oversee the day to day affairs of the company and right the wrongs.
The new management led by Mr Jacob Erhabor had since assumed duty.
Insurance Penetration: NAICOM Seeks Domestication Of Insurance Law By States Governments
In a bid to deepen insurance penetration across 36 States and the grassroots, the National Insurance Commission (NAICOM) has been going around the country to meets with the executive governors on the need for them to domesticated Insurance Laws in their various states.
In the process the Commission met with the governors’ forum, MDAs and other relevant groups to sensitise them on compulsory insurances as stipulated in the Insurance Act 2003.
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The area of interest, according to the Commission, is the enforcement of the Compulsory Insurances.
IFRS 17: FG Sets Tackles Insurance Operators, Other Listed Entities
During the period under review the regulatory authorities, the Securities and Exchange Commission (SEC) and the National Insurance Commission (NAICOM) moved to tackle listed companies including insurance entities who failed to file their financial reports to the regulators under the International Financial Reporting Standard (IFRS) 17.
The exercise will continue from the first quarter of 2025 as these firms are expected to file their reports according to IFRS 17 prescriptions or face regulatory sanctions.
Police Gets NPF Insurance Operational license
In a bid to open up the market and promote healthy competiveness among the operators, the National Insurance Commission (NAICOM) finally issued and operating license to NPF Insurance Company Limited.
The new underwriter will henceforth underwrite the assets of the Nigerian Police Force. Police force is one of the biggest institutions with one of the largest asset base in the country.
NAICOM, ICRC To Enforce Insurance Of Public-Private Assets
Also the NAICOM within the period of the year 2024 reached an understanding with the Infrastructure Concession Regulatory Commission (ICRC) in a view to deepening insurance penetration on insurance of public-private assets.
The aim is to ensure that infrastructure projects in the country are properly insured in order to mitigate potential risks, protect investments and promote economic growth.
CIIN Elects 52nd President
In June 2024, the leadership of the Chartered Insurance Institute of Nigeria (CIIN) changed hands as Mrs Yetunde Ilori, a seasoned insurance professional took over the mantle as the 52nd President/Chairperson pf the Governing Council of the oldest professional institute in Nigeria.
In her acceptance speech, Mrs Ilori pledged promote e-Education, uphold the sanctity of the insurance profession, encourage innovation and build capacity under her EPIC mantra.
NAICOM, NPF Synergise To Enforce Compulsory Insurance Products
Poised to ensure that the compulsory insurance products as stated in the extant Insurance Act are complied, the NAICOM during the year had taken the campaign to the Nigerian Police Force for partnership in the enforcement.
In another development, the insurance regulator also sought a collaboration with the Federal Capital Territory Authority (FCTA) with the aim of enforcing compliance in the territory.
The impact of the collaboration, it is believed will come to bear in the insurance industry finances in the new business year.
Daily Independent Holds Maiden Insurance Summit
As stakeholder’s concern for low insurance penetration in the country deepens, Independent Newspapers Limited, the Publisher of Daily, Saturday and Sunday titles held its maiden edition of Insurance Summit in April 2024 as part of its contribution to the sector’s growth.
The Summit, one of its kinds in the sector, gathered together head eggs in the underwriting, the informal sector operators, top government notches as well as the members of the Nigerian Police Force to speak to the theme; ‘Inclusive Insurance: Navigating the New Narratives for Sectoral Growth.’
The successful maiden outing will leverage the historic event to expand and innovate to help the industry achieve the envisaged growth trajectory going forward.
