Insurer commends NIIRA 2025, says Act will strengthen sector

Chartered Insurer, Mrs Adetola Adegbayi, has hailed the newly signed Insurance Industry Reform Act (NIIRA 2025), describing it as a game-changing legislation.

Adegbayi told the News Agency of Nigeria (NAN) on Monday in Lagos that the Act would strengthen regulation, simplify compliance, and restore confidence in the insurance sector.

She said that the Act introduced innovative provisions to close long-standing gaps in the industry’s framework.

Adegbayi explained that the law expands mandatory coverage to petroleum products marketers and logistics companies, in addition to public buildings already captured under the previous regime.

“The Act also simplifies compliance, as professionals can now set up broking firms as limited liability partnerships instead of being compelled to register full-fledged companies,” she said.

According to her, NIIRA 2025 also introduces a flexible indemnity system where minimum values are tied to the revenue of brokerage firms.

She added that recapitalisation thresholds would now be risk-based, with NAICOM empowered to adjust requirements depending on the risks carried by insurers.

Adegbayi noted that the law also aligns with the National Health Insurance Authority (NHIA) Act by tightening rules for foreign health insurance providers, closing gaps that had previously undermined regulatory oversight.

“As a practitioner, I endorse this consolidation. It was long overdue, and I appreciate how it tidies up loose areas within the NHIA framework.

“With effective implementation, this law will bolster the industry,” she said.

She further highlighted that NIIRA 2025 makes governance reforms mandatory, with NAICOM expected to issue service charters for all stakeholders to promote transparency and accountability.

“With the leadership team at NAICOM, I have no doubt this will be a walk in the park for them,” Adegbayi added.