The National Insurance Commission (NAICOM) has emphasized the need for a robust legal framework to effectively regulate the activities of insurance companies in Nigeria. The current legal structure, according to Commissioner for Insurance Olusegun Omosehin, limits the commission’s ability to make decisive policy decisions or enforce punitive measures without facing legal challenges.
Speaking in Lagos alongside his executive management team, Omosehin noted that this legal shortfall is partly responsible for NAICOM’s struggles to successfully implement past recapitalization initiatives and to hold erring companies accountable without ending up in court.
“The banking industry has successfully undergone several recapitalization exercises,” Omosehin said, highlighting the difference in regulatory powers between NAICOM and the Central Bank of Nigeria. “Does it mean that the banks don’t know where the court is? It’s a function of legal framework.”
In response to these challenges, a new NAICOM Bill has been introduced in the Senate, which has passed its first reading. The bill, alongside the Consolidated Insurance Bill, aims to strengthen the regulatory powers of NAICOM.
Omosehin outlined five key priorities for his administration: protecting policyholders, capacity building, ensuring effective operations, fostering innovation, and increasing access and penetration of insurance services. He stressed that protecting policyholders is critical to embedding insurance into national life, as it will help rebuild trust and confidence in the industry.
Capacity building, according to Omosehin, involves creating the right framework to enable effective regulation of the industry. He also emphasized the importance of ensuring that insurance companies are financially sound to meet their obligations.
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Additionally, the commission is focusing on innovation to expand the market and enable operators to capitalize on emerging opportunities within the industry. By addressing these priorities, NAICOM aims to establish a more resilient and trustworthy insurance sector in Nigeria.
